What Is True of Marginal Cost When Marginal Returns Are

question 27

Multiple Choice

What is true of marginal cost when marginal returns are decreasing?

• A)It is negative and increasing.
• B)It is negative and decreasing.
• C)It is positive and increasing.
• D)It is positive and decreasing.
• E)It is positive and has a constant slope.

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Definitions:

Declined

A term used when an offer, proposal, or transaction has been refused or not accepted.

Ratio Analysis

The method of evaluating various financial metrics in a company’s financial statements to assess its performance and financial health.

Size Differences

Variations in the scale or magnitude of entities, often impacting operations, strategies, or market positioning.

EBIT

Stands for Earnings Before Interest and Taxes, and is an indicator of a company's profitability excluding interest and tax expenses.