According to the investment opportunity schedule (IOS), as the cumulative amount of moneyinvested in a project increases, the return on the projects will
A) decrease.
B) remain unchanged.
C) increase.
D) not be a factor.

Question

Quizplus · Accepted Answer

As more money is invested in a project, the return on additional investment typically decreases due to diminishing marginal returns.

According to the Investment Opportunity Schedule (IOS), as the Cumulative