The "Law of Diminishing Returns" States That

question 44

Multiple Choice

The "Law of Diminishing Returns" states that

• A)additional inputs will reduce output.
• B)additional inputs will decrease average productivity.
• C)the supply of inputs is becoming scarce.
• D)additional inputs will lead to less additional output.

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Definitions:

Unlimited Liability

A legal obligation where the owners or partners of a business are personally responsible for all the debts of the business, without any limits on the amount for which they can be liable.

Transfer Ownership

The process of legally moving the rights and responsibilities of an asset or property from one entity or individual to another.

Corporate Shareholders

Individuals or entities that legally own one or more shares of stock in a public or private corporation, granting them rights to dividends and a vote in company matters.

Liability

A cost when a corporate’s responsibility has not been met.