The Law of Increasing Additional Cost Exists Because

question 4

Multiple Choice

The law of increasing additional cost exists because

• A) resources are not perfectly adaptable to both production processes.
• B) the demand for the product increases.
• C) the cost of resources of the products increase.
• D) the cost of resources of the products decrease.

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Definitions:

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company, that has no direct correlation to the market value.

Corporate Existence

The state of being recognized as a legal entity that is separate from its owners, enabling the corporation to own assets, incur liabilities, and enter into contracts.

Business Combination

A transaction or other event in which an acquirer obtains control of one or more businesses.

Common Stock

Equity ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.