Anders, Inc., has 5,000 shares of 5%, $100 par value, cumulative preferred stock and20,000 shares of $1 par value common stock o
utstanding at December 31, 2011. Therewere no dividends declared in 2009. The board of directors declares and pays a $45,000dividend in 2010 and in 2011. What is the amount of dividends received by the commonstockholders in 2011?a. $15,000b. $25,000c. $45,000d. $0
The law of diminishing marginal returns holds for a situation in which some inputs are variable and some inputs are fixed.
<h3>What is the law of diminishing marginal returns?</h3>
The law of diminishing marginal returns states that after some optimal level of capacity is reached in a production process, an additional factor of production would result in a lessening of output (quantity of production).
In this context, we can infer and logically deduce that the law of diminishing marginal returns would only hold for an economic situation in which some inputs are variable and some inputs are fixed.
