Diminishing marginal product explains why, as a firm’s output increases .
a) The production function and total-cost curve both get steeper.
b) The production function and total-cost curve both get flatter.
c) The production function gets steeper, while the total-cost curve gets flatter.
d) The production function gets flatter, while the total-cost curve gets steeper.

The following pertains to smoke, inc.’s investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smoke’s net income for the year ended december 31, year 3?