When the incremental profit associated with an increase in the level of an activity never increases and may decrease, the activity is said to have:____.

Respuesta :

The activity will be known to be the decreasing marginal returns;

As the association of profit is with an activity that means if the level activity increases the profit will increases. But here condition of non-increasing activity will lead the profit to remain constant or it might decrease according to the given condition of “it may decrease.”

When the activity or task performance will not increase it means that profit will be reduced. Profit is directly linked with the activity. Let’s discuss an example of an individual who’s performing tasks and earns profit with respect to his work.

"Profit is directly proportional to the level of activity"

If an individual work and make 20 units and earn a profit of about $10 it means he’s earning a profit of $0.50 or 50 cents per unit when the activity level will reduce and he will make 10 units per day that will reduce his/her profit and will earn about $5 per day.

For more questions like this of profit and activity open the like below,

https://brainly.com/question/15552194?referrer=searchResults

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