Return on assets = Net earnings / Average total assets
Average total assets = ($4,090 + $5,825) / 2 = $4,957.50
1. Return on assets = $396.60 / $4,957.50 = 8.0%
2. Asset turnover = Net sales / Average total assets = $11,898 / $4,957.50 = 2.4 times
3. Profit marging = Net earnings / net sales = $396.60 / $11,898 = 3.3%.
Profit margin measures how profitable a company or business is, basically by dividing revenue by revenue. The profit margin, expressed as a percentage tells you how many cents you've earned for every dollar you sell.
Profit margin is a measure of profitability. Calculated as a percentage of profit to sales. There are three types of profit margins gross profit margin operating profit margin and net profit margin. Gross profit margin is calculated as gross profit divided by net sales.
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Cullumber business enterprise reports the following information (in millions) in the course of a recent 12 months.
go back on property = net earnings / common general belongings
common overall property = ($four,090 + $five,825) / 2 = $four,957.50
go back on property = $396.60 / $four,957.50 = 8.0%
Asset turnover = internet sales / average overall belongings = $11,898 / $4,957.50 = 2.4 instances
income marging = net profits / net sales = $396.60 / $eleven,898 = three.three%
The go-back on assets suggests the proportion of the way profitable an enterprise's belongings are in generating revenue.
Go back on assets (ROA) is a measure of the way efficiently a corporation uses the belongings it owns to generate earnings. Managers, analysts, and traders use ROA to assess an agency's financial health.
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Which best describes the attitudes of the republican and democratic party on free trade?.
The phrase "significant internal division within each party on the merits of free trade" best captures how the republican and democratic parties feel about free trade.
What do you mean by free trade?Free trade is the exchange of products and services between nations or subnational areas without the imposition of tariffs, quotas, or other limitations. Under the mostly hypothetical free trade system, governments are not allowed to impose any export or import quota, taxes, levies, or penalties. The total opposite of free markets in this regard is protectionist, a defensive trade strategy meant to fend off potential foreign competition.
What are the two disadvantages of free trade?The drawbacks come in two forms. If they are not put up within the appropriate context of policy, FTAs have the potential to decrease rather than boost economic welfare. They are inadequate tools for pushing trade liberalization in sectors where parties outside of the agreement have a strong say, which is the second disadvantage.
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According to the ______________________, debt collectors are not allowed to use their positions to collect a debt using any manner of work performance that is found to be abusive, deceptive, or unethical
Fair Debt Collection Practices Act (FDCPA) Debt collectors are not allowed to use their positions to collect a debt using any manner of work performance that is found to be abusive, deceptive, or unethical.
FDCPA (Fair Debt Collection Practices Act):
The Fair Debt Collection Practices Act is a federal law passed in 1977 to protect consumer rights from abusive, unfair, or deceptive debt collection practices.
The fair debt collection practices act prohibits abusive, unfair, or deceptive debt collection practices.
This act imposes certain restrictions on debt collectors, including the following:
They are unable to contact you at an inconvenient time or location.They cannot harass or threaten you over the phone or in person.In case you have an attorney, then they must contact your attorneyFair debt collection practices act covers the debts such as mortgages , medical debts, credit cards etc
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major investments in either tangible long-term assets such as land, or intangible assets such as patents are considered to be expenditures. multiple choice question. capital master time value primary
Major investments in either tangible long-term assets such as land, or intangible assets such as patents are considered to be a capital expenditures.
Capital expenditure is a sum of money used to purchase, maintain, modernize, or enhance a fixed firm asset, such as a structure, place of business, or piece of machinery. A capital expenditure is distinct from a regular company expense, which belongs to the operational expense group.
The cash flow from the investment activities section of a company's cash flow statement is where you may see capital expenditure. A capital expenditure may be referred to as capital expenditures, acquisitions of property, plant, and equipment, or acquisition expense, depending on the company and how it is highlighted.
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question 36 neva is a partner in orchard farm. neva gives notice to quit the firm, which otherwise continues to do business. this is a. dissociation. b. dissolution. c. unethical. d. illegal.
Neva is a partner in the orchard farm. neva gives the notice to quit the firm, which otherwise continues to do business. This is dissociation.
Dissociation" usually refers to a member's decision to leave a limited liability company(LLC) but it can also happen when the other members decide to kick out a specific member. An LLC member may freely terminate their membership at any time. The withdrawal will be a valid dissociation as long as the operating agreement does not forbid withdrawal. If there is a limitation on withdrawal, a member may still withdraw; however, as specified in the operating agreement, the other members may take certain steps against the departing member.
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in our lecture, the professor used coca-cola, airline tickets, and amazon purchases as examples of what type of pricing strategy?
Pricing strategies are the procedures and methods that companies employ to determine the costs of their goods and services.
Which four price schemes are there?Depending on the sector and type of business, value-based, competition-based, cost-plus, and dynamic pricing are all regularly employed approaches.
Which pricing technique is employed when a business wants to match the prices of its rivals?1. A pricing strategy based on competition. Competitive pricing or competitor-based pricing are other names for competition-based pricing. This pricing strategy does not take into account the cost of the product or consumer demand; instead, it concentrates on the current market rate (or going rate) for a company's good or service.
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coach dan gets paid $15 for each basketball practice session that he runs. if this equation represents the amount of money that he has in his bank account (t) and the number of practices (p): t
Answer:
f
Explanation:
after the firm has piques the interest of its target market, the goal of subsequent IMC messages should move the consumers from "i like it" to "i want it"
desire
Desire is when the firm has piques the interest of its target market, the goal of subsequent IMC messages should move the consumers from "i like it" to "i want it"
The particular demographic you want to reach with your marketing message is known as a target market. They are the people who are most likely to purchase your goods or services, and they share some traits like behaviors and demographics.
It's important to make a clear distinction between target markets and target audiences because they connect to different people and can easily be mistaken with one another.
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pauley company needs to determine a markup for a new product. pauley expects to sell 15,000 units and wants a target profit of $22 per unit. additional information is as follows:
Using the variable cost method, the markup percentage to variable cost should be 81%.
Calculation of the appropriate markup percentage for variable costs
Using this equation
[(Target Profit + Fixed Overhead + Fixed Administrative) / Total Variable Costs]
Let's enter the formula.
[($22*15,000 units)+$13,500+$21,000]/$30*15,000] is the markup percentage.
($330,000+$13,500+$21,000)/$450,000 is the markup percentage.
Markup % = $364,500 / $450,000.
Markup percent = 0.81 times 100
81 percent markup
Total Variable Cost Calculation
$19 is the variable product cost per unit.
$1 for variable administrative expense per unit.
$30 is the total variable cost.
Therefore, 81% should be utilized as the markup percentage for variable costs.
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The complete question is:
Pauley Company needs to determine a markup for a new product. Pauley expects to sell 15,000 units and wants a target profit of $22 per unit. Additional information is as follows:
Variable product cost per unit $19
Variable administrative cost per unit 11
Total fixed overhead 13,500
Total fixed administrative 21,000
Using the variable cost method, what markup percentage to variable cost should be used?
The offices and committee hearing spaces for texas legislators is best described as.
The offices and committee hearing spaces for Texas legislators is best described as excellent.
What is Texas legislators?⇒ The state legislature of the US state of Texas is called the Texas Legislature. It is a bicameral body with a 150-member House of Representatives and a 31-member Senate. At the Capitol in Austin, the Texas legislature convenes. In addition to its strong constitutional ties to the Lieutenant Governor of Texas and its influence over and direction of state government's actions, it is a potent branch of Texas government thanks to the state's plural executive.
Since Texas's admission to the Union in 1845, the Legislature has been the Republic of Texas's legally recognized successor to the Congress. The first regular session of the legislature took place from February 16 to May 13, 1846.
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which of the following nontaxable fringe benefits have a maximum dollar amount that is not subject to tax? (check all that apply.)
Employee educational assistance, qualified transportation fringe benefits, and dependent care benefits nontaxable fringe benefits have a maximum dollar amount that is not subject to tax.
What fringe benefits are not taxable?The IRS makes a distinction between three separate categories of non-taxable benefits: those that are entirely tax-free, those that are income tax-free, and those that are tax-free up to a specific threshold. The main categories of fringe benefits that can be excluded from gross income include flexible spending accounts, group term life insurance, education aid plans, no-additional-cost services, qualifying employee discounts, and working condition fringe benefits.
Hence taxable fringe benefits and nontaxable fringe benefits are present. The spending accounts offered by the employer, such as flexible spending accounts for dependent care and medical expenses are not taxable. The payment for parking while at work and using public transportation to go there and back, assistance with adoption, on-site meals, athletic facilities, disability insurance, health insurance, and financial aid for education are all examples of nontaxable fringe benefits.
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when receivables are bundled and transferred to another organization that issues securities collateralized by the transferred receivables, the arrangement is defined as:
When receivables are bundled and transferred to another organization that issues securities collateralized by the transferred receivables, the arrangement is defined as securitization.
What is Securitization?
By pooling assets, interest-bearing securities can be created by securitization. Investors that buy repackaged securities get the principle and interest payments from the underlying assets.
The securitization process starts when an issuer creates a marketable financial instrument by pooling or combining several financial assets, such several mortgages, into one entity. Investors are subsequently sold by the issuer this collection of bundled assets. The market is made more liquid by the options securitization provides for investors and the capital it frees up for originators.
Theoretically, every financial asset may be securitized, or transformed into a tradable, fungible thing with monetary worth. Everything that is a security is, in essence, this.
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what are the estimated percentages of innovation and diffusion responsible for bringing cultural items to a society?
Cultural diffusion refers to the process by which various aspects of one culture are incorporated into other cultures. The widespread use of cell phones is an illustration of cultural dissemination.
What are the differences between invention and discovery as catalysts for cultural change?Technology is the foundation of invention, while culture is typically the foundation of discovery. While creation involves putting things together in novel ways, discovery entails discovering something that already exists. While discovery, like the principles of physics, can be both theoretical and tangible, invention pertains to material culture.
What is the effect of cultural dispersion on society?Cultural fusion and mutual understanding are made possible through cultural dispersion. This merging of cultures has both advantages and disadvantages. A few of the advantages are,
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an investor purchases a long call at a price of $2.80. the strike price at expiration is $41. if the current stock price is $41.10, what is the break-even point for the investor? (do not round intermediate calculations. round your final answer to 2 decimal places.)
The Break-even point for the investor will be equal to $43.80.
The call option allows the entity to buy any stock while the put option allows any entity to sell any stock. The Break even points for both the call and put options are different. If we need to find the Break even point for the call option then the price of the call is added to the strike price and when we need to find the Break even point for put option then the price of the call is subtracted from the strike price. According to the question it is the call option and
Price of call = $2.80
Strike price = $41
Break even point = Price of call + Strike price
Break even point = $2.80 + $41
Break even point = $43.80
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the government regulates monopolies because part 2 a. monopolies price their output above the marginal cost of production. b. monopolies produce less than the socially desirable level of output. c. monopolies generate inefficiency by creating a misallocation of resources. d. all of the above.
The government regulates monopolies because monopolies produce less than the socially desirable level of output, monopolies price their output above the marginal cost of production, monopolies generate inefficiency by creating a misallocation of resources. (All of the above.)
Why does the government regulate natural monopolies?
First of all, there is a good reason why natural monopolies are regulated by the government. Because the electric company has a monopoly, consumers are unresponsive to price changes; if a company doubled the price of electricity, people would have to pay it because they have no one else to buy it from.
What does governmental regulation serve to achieve?
Government laws play a significant part in ensuring a secure, equitable economy for consumers and small businesses alike, protecting them from being drained by powerful corporations and unfair business practices.
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jane is considering investing in three different stocks or creating three distinct twostock portfolios. jane considers herself to be a rather conservative investor. she is able to obtain forecasted returns for the three securities for the years 2015 through 2021. the data are given in the following table
Expected return of stock A = (0.1+0.13+0.15+0.14+0.16+0.14+0.12)/7 = 0.1343
The expected return of stock B = 0.1157
The expected return of stock C = 0.1071.
The expected rate of return is the amount of profit or loss an investor can expect on an investment. The expected rate of return is calculated by multiplying the potential outcomes by the probabilities of them occurring and then summing those outcomes. Expected returns cannot be guaranteed.
Investment markets are so volatile that the expected return is just one of many possible returns. Since the investment's past performance is taken into account, the expected return can be calculated as a weighted average result. Multiply each asset's expected rate of return by the weight of that asset as part of the portfolio. Divide the expected dividend by the current stock price.
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contests addie is entering a contest in which she needs to make a piece of clothing entirely out of duct tape. if her budget for tape is $100 and each roll costs $2.50 after sales tax, how many rolls of tape can addie buy?
If contests addie is entering a contest in which she needs to make a piece of clothing entirely out of duct tape. if her budget for tape is $100 and each roll costs $2.50 after sales tax. The number of rolls of tape that addie can buy is 40.
How to find the number of rolls of tape?Using this formula to find the number of rolls of tape
Number of rolls of tape = Budget for Tape / Roll costs after sales tax
Where:
Budget for Tape = $100
Roll costs after sales tax = $2.50
Let plug in the formula
Number of rolls of tape = $100 / $2.50
Number of rolls of tape = 40 rolls
Therefore the Number of rolls of tape is 40 rolls.
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when corporations account for their taxes, they estimate their taxes quarterly and accrue them for payment. in such a transaction, the account income tax expense receives
Then they accrue their taxes for payment and estimate them quarterly. As a result of such a transaction, the account's income tax expenditure is . A debit
Tax expenditures are specialized parts of the tax system, such exclusions, deductions, deferrals, credits, and tax rates, that benefit certain activities or categories of taxpayers. For instance, state and local taxes, mortgage interest costs, and individual itemized deductions for charitable contributions are all tax expenditures. According to the rules of the Income-Tax Act, 1961 (the "Act"), it is a well-established legal concept that the income tax that a taxpayer pays on its income is not permitted as a deductible expense.
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wright market research is able to borrow money at a rate of 6.8 percent per year. this interest rate is called the:
Wright market researchcano borrows money at a rate of 6.8 percent per year. this interest rate is called the Compound rate.
What is the Compound rate?
The compound rate is estimated by summing the annual interest rate increased towards the number of compounded periods and subtracting one after multiplying the initial principal amount by one. The resulting value is subsequently deducted from the loan's entire original amount. P stands for principal, I stands for interest rate, and n stands for compounding periods.
To compute the compound rate multiply the principle of the original loan by the annualized rate multiplied by the number of consecutive compound periods less one. You will then be left with the principal amount of the loan plus compound interest.
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exercise 21.8 (static) sunk costs: scrap or rework decision (lo21-1, lo21-2, lo21-3, lo21-4) road master shocks has 15,000 units of a defective product on hand that cost $80,000 to manufacture. the company can either sell this product as scrap for $6 per unit or it can sell the product for $9 per unit by reworking the units and correcting the defects at a cost of $40,000. prepare a schedule to show the effect of selling the defective units as scrap or rework.
5,000 is the correct answer, the net benefit of selling the reworked units.
Scrap value (15,000*6) = 90,000
Net proceeds from sale of reworked units (15,000*9) - 40,000 = 95,000
Net benefit of selling the reworked units 5,000
An unrecoverable expense that has already been made is referred to as a sunk cost. Sunk costs, for instance, might include the price of machinery and equipment as well as the cost of the factory's lease for a manufacturing company. Sunk costs are not considered in a sell-or-process-further decision, which is a decision.
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suppose there is a 3 percent increase in the nominal wages of workers in an economy. the annual rate of inflation in the economy is about 6 percent. which of the following is true?
After analyzing the scenario, the following which is true "Your real wage fell". Thus, option 'A' is the correct option.
What is a real wage?Real wages are salaries that have been increased to account for inflation or salaries that are expressed in terms of how much may be spent on goods and services. In contrast to nominal wages or unadjusted wages, this phrase is used.
Real earnings offer a clearer picture of an individual's pay in terms of what they can afford to buy with those wages - particularly, in terms of the number of goods and services that can be purchased - since they have been adjusted to account for changes in the pricing of goods and services.
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Your complete options probably are:
a. Your real wage fell.
b. Your nominal wage fell.
c. Both your nominal and real wages decreased.
d. Although your nominal wage fell, your real wage increased.
e. Both nominal and real wages increased.
as someone interviewing for a project management role, you ask questions about sick days and vacation, working from home, and if the company supports employees sharing their identity in the workplace. which part of a company’s culture do these questions help you learn more about?
The part of a Company's culture that the question is teaching us is (b) Policies.
What is a company policy?A company policy is a set of guidelines and rules that employers can use to formalize their expectations and standards for the "health and safety of employees, accountability, best practices, and internal business procedures".
What are the 4 elements that go into making a policy?A description of what the organization wants to accomplish for its customers. Supporting beliefs, values, and philosophies. Broad service goals that outline the areas of focus for the organization. Methods for achieving each goal.To learn more about guidelines, please refer: brainly.com/question/18720759
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The following data relate to direct materials costs for February:Materials cost per yard: standard, $1.91; actual, $2.04Yards per unit: standard, 4.62 yards; actual, 4.98 yardsUnits of production: 9,000The direct materials quantity variance isa.$6,188.40 favorableb.$6,188.40 unfavorablec.$6,609.60 favorabled.$6,609.60 unfavorable
The following data relate to direct materials costs for February: Materials cost per yard: standard, $1.91; actual, $2.04Yards per unit.
Direct material costs that are readily identifiable by production unit. For example, the cost of glass is a direct material cost in manufacturing a light bulb. Materials are the most important factor in the manufacture of products and goods.
Material cost is the cost of materials used to manufacture a product or provide a service. All indirect materials such as B. Cleaning agents used in the manufacturing process.
Direct material costs are the costs of raw materials or parts used directly in the manufacture of a product. For example, if Company A is a manufacturer of toys, an example of a direct material cost would be the plastics used to make the toys.
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there is a new seller-carry loan with a closing august 20 and the first payment due october 1. how is the interest adjustment calculated?
September is covered by the October payment, but interest is payable from August 20 through August 31 (31 - 19 = 12).
Where on the settlement statement does the buyer's new loan appear?Where on the settlement statement does the buyer's new loan appear? Buyer with credit—The buyer's debit column contains all of the costs owed to him or her, while the buyer's credit column outlines the buyer's payment plan. The loan is a source of funds rather than a charge, making it a credit to the buyer.
How do you figure out how much money to bring to the closing?The exact amount a buyer is required to pay at closing is determined by deducting the buyer's total credits (such as prepaid earnest money or the remaining amount of a loan that was preapproved for).The buyer will believe that the seller is from the total debits of the buyer.
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what is the goal of organizational design? multiple choice question. to reduce competitive advantage with other firms to ensure that each employee is placed on a specific level within the firm's hierarchy to enable managers to translate their chosen strategy into a realized one to eliminate confusion about which job covers particular tasks
The organization's design goal is to help managers to translate their selected strategy into a realized one.
What is organizational design?Organizational design is a step-by-step approach for identifying dysfunctional components of work flow, procedures, structures, and systems, realigning them to current business realities/goals, and developing strategies to implement the new changes. The approach focuses on both the technological and human aspects of the business. For the majority of businesses, the design process results in a more effective organisational design, considerably enhanced results (profitability, customer service, internal operations), and empowered and committed personnel. The design process is distinguished by a comprehensive and holistic approach to organizational improvement that encompasses all aspects of organizational life.
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a study of adults with a diagnosis on the autism spectrum looked at their abilities to anticipate the actions a character would take when they had a false belief. which of the following statements about the results of this study is true?
Autistic disorder, pervasive developmental disorder not otherwise specified (PDD-NOS), and Asperger syndrome are now all included in an ASD diagnosis in addition to numerous other conditions that were formerly diagnosed individually. You can understand and navigate the diagnostic process with the aid of your doctor or another healthcare professional.
Asperger syndrome (AS), commonly referred to as Asperger's, is a former neurodevelopmental condition marked by substantial challenges in social interaction and nonverbal communication, as well as constrained and repetitive patterns of behaviour and interests. Since the syndrome was combined with other disorders to become autism spectrum disorder, it is no longer recognized as a separate diagnosis (ASD). It was believed that its largely unimpaired spoken language and IQ set it apart from other diagnoses that were combined into ASD. Hans Asperger, an Austrian pediatrician, reported youngsters in his care in 1944 who had trouble making friends, did not comprehend others' gestures or sentiments, engaged in one-sided conversations about their favourite topics, and were clumsy. These characteristics led to the syndrome's naming.When the fifth edition of the American Diagnostic and Statistical Manual of Mental Disorders (DSM-5) was released in 2013, the diagnosis of Asperger's was eliminated, and the symptoms are now categorized under autism spectrum disorder alongside classic autism and pervasive developmental disorder not otherwise specified (PDD-NOS). In the International Classification of Diseases (ICD-11), it was similarly combined with autism spectrum disease as of 2021.
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the projected benefit obligation was $80 million at the beginning of the year. service cost for the year was $10 million. at the end of the year, pension benefits paid by the trustee were $6 million and there were no pension-related other comprehensive income accounts. the actuary’s discount rate was 5%. what was the amount of the projected benefit obligation at year-end?
Initially in the year, the anticipated benefit obligation was $80 million. $10 million was spent on services throughout the year.
How do you determine your estimated benefit obligation at year's end?The Process for Calculating Projected Benefit Obligation
On the balance sheet of the company, you can see how financed the pension plan is.
The assets of the pension plan should be valued fairly.
To calculate the projected benefit obligation, deduct the funded status of the pension plan from the fair market value of the assets in the pension plan.
How is PBO calculated at the end of the year?Benefits from earlier years (1 plus the discount date) divided by PBO at the start of the year.
decades until retiring
Opening obligation is equal to benefits accrued in preceding years plus the discount rate.
decades until retiring
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hermosa vista company issued $290,000 5-year, 5.75% bonds and received $296,235 in cash. the market rate of interest when the bonds were issued was 5.25%. what is the amount of interest expense to be recorded for the first annual interest period if the company uses simplified effective-interest amortization?
The amount of interest expense Hermosa Vista Company should record for the first annual interest period if the company uses simplified effective-interest amortization is $15,552.
How is the interest expense determined?Since the bonds were issued at a premium, under the effective-interest amortization method, the interest expense is the difference between the cash (coupon) payment and the premium amortization.
Another way of computing the interest expense for bonds issued at a premium is to apply the effective market rate to the bonds payable balance.
Face value of bond = $290,000
Sales proceeds = $296,235
Bond premium = $6,235
Coupon interest rate = 5.75%
Market interest rate = 5.25%
Maturity period = 5 years
First coupon payment = $16,675 ($290,000 x 5.75%)
Interest Expense = $15,552 ($296,235 x 5.25%)
Bond premium amortization = $1,123
Bond Payable end-of-the-year balance = $295,112 ($296,235 - $1,123)
Transaction Analysis for Interest Expense:Interest Expense $15,552 Premium amortization $1,123 Cash $16,675
Thus, Hermosa will debit Interest Expense for $15,552, Premium Amortization for $1,123, and credit Cash for $16,675.
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___________ is the stage of new product development that involves promoting the product to distributors and developing advertising and sales campaigns to generate and maintain consumer interest in the product.
Commercialization
Commercialization is the stage of new product development that involves promoting the product to distributors and developing advertising and sales campaigns to generate and maintain consumer interest in the product.
In the field of business, commercialization can be described as a process by which new products are brought into the market and promoted.
Through commercialization, efforts are made to promote the product to distributors so that the product can be sold via the distributors.
Methods such as advertising are a part of commercialization as they play an active part in promoting the product.
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(cost of common equity) falon corporation is issuing new common stock at a market price of $. dividends last year were $ and are expected to grow at an annual rate of percent forever. what is falon's cost of common equity capital?
According to the question, the falon's cost of common equity capital is 12.86%. It is one of the main ways that companies get the money they need to finance their operations and overall growth.
What do you mean by the equity capital?Equity capital is the money that a business raises from its owners and other shareholders in exchange for a stake in the business. The money raised through equity financing is not subject to repayment by the corporation.
Private equity capital and public equity capital are two of the most typical ways to raise equity funds. Both involve the public and private issuance of shares.
Given,
Growth rate = 7.4%
Stock price = $ 27.32
Last year dividend = $ 1.39
Here,
Cost of Equity = Next year dividend / Stock price + Growth rate
Cost of Equity = 1.39 × (1+0.074) / 27.32 + 7.4%
Cost of Equity = 1.49286 / 27.32 + 7.4%
Cost of Equity = 5.46 % + 7.40%
Cost of Equity = 12.86%
Therefore, according to the question, the falon's cost of common equity capital is 12.86%. It is one of the main ways that companies get the money they need to finance their operations and overall growth.
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In the short run, assume diminishing marginal product of labor sets in with the hiring of the second worker.Which of the following will remain constant as a firm produces more output?A. Average product of laborB. Total costC. Total fixed costD Total variable costE. Marginal cost
Option c is correct. The following that will remain constant as a firm produces more output is total fixed cost.
According to the theory of declining marginal productivity, productivity will eventually decline if some inputs—variable inputs—are increased during the production phase while other inputs—fixed inputs—remain constant.
Assume that in the short term, the addition of the second employee will result in a declining marginal product of labor while the fixed cost stays the same.
As a result, choice C is accurate.
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