Diminishing returns imply that when a firm already has significant value built into its product offering, increasing value by a relatively small amount requires only minimal additional costs
Indicate whether the statement is true or false.
FALSE
Diminishing returns imply that when a firm already has significant value built into its product offering, increasing value by a relatively small amount requires significant additional costs. The converse also holds, when a firm already has a low-cost structure, it has to give up a lot of value in its product offering to get additional cost reductions.
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Suppose the U.S. Treasury offers to sell you a bond for $3,000. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $5,000. What interest rate would you earn if you bought this bond at the offer price?
A) 5.24% B) 6.93% C) 6.70% D) 7.48% E) 7.79%
In a geographic structure, the corporate headquarters retains responsibility for worldwide planning and control
Indicate whether the statement is true or false