Explain the economic law of diminishing returns.
What will be an ideal response?
In economics, the law of diminishing returns refers to a declining amount of extra outputs when more of a desirable input is added to an economic situation. After a certain point, the output from each unit of added input tends to become smaller. The added output may reach zero or lower when more units of input are added.
You might also like to view...
When bonds are issued by a company, the accounting entry shows an
a. increase in liabilities and a decrease in stockholders' equity. b. increase in liabilities and an increase in stockholders' equity. c. increase in assets and an increase in liabilities. d. increase in assets and an increase in stockholders' equity.
Consumers' opinions on products and services posted online are sources of knowledge from the web.
Answer the following statement true (T) or false (F)
At the beginning of the year a company had a debit balance in the account Market Adjustment--Trading Securities. During the year the company did not buy or sell any trading securities, but at the end of the year the related market adjustment account had a credit balance. This change indicates that
a. a loss on the income statement was recognized. b. a gain on the income statement was recognized. c. the value of the investment account increased. d. the value of the investment account decreased.
A partner may pursue his or her own interests without automatically violating the partner's fiduciary duties to the partnership and the other partners.?
Indicate whether the statement is true or false