PMI Professional In Business Analysis PMI Pba · Free Practice Question Easy

Question 29

A determination that further investment in the project cannot be cost justified based on the return that investment would bring may be based on:
  • A Law of diminishing returns.
  • B Rule of seven.
  • C Sunk costs.
  • D Net present value analysis.
Reveal correct answer

Correct answer: A

Explanation

The law of diminishing returns states that after a certain point, adding more input will not produce a proportional increase in productivity.

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