If the Marginal Product of Labor Is Increasing,the Marginal Cost

question 12

Multiple Choice

If the marginal product of labor is increasing,the marginal cost of output must be

• A) decreasing.
• B) constant.
• C) equal to average total cost.
• D) unchanged.
• E) increasing.

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Definitions:

WACC

A technique called Weighted Average Cost of Capital computes a firm’s cost of funds, taking into account the proportional weighting of various capital types.

NPV

Net Present Value represents a technique for assessing the profitability of a project or investment, utilized in the process of capital budgeting.

Cash Flow

The total amount of money being transferred into and out of a business, capturing the company's operational, investing, and financing activities.

Cost Of Capital

The minimum return rate a company needs to achieve on its investments to preserve its market valuation and draw in financing.