No, diminishing returns do not necessarily mean economic inefficiency. By contrast, diminishing returns usually create a condition where a marginal benefit = marginal cost condition is achieved and results in a stable, non-infinite equilibrium. It would be inefficient to produce over or under this equilibrium, but the nature of production functions do not ensure inefficiency.
Diminishing return can lead to inefficiency in an economy because when input in an economy is not checkmated, it is bound to culminate into less achievement in its productive sector
why law of diminishing returns is considered a short-run phenomenon?
Three stages of production are increasing marginal returns, diminishing marginal returns, and negative marginal returns.
a]increasing marginal returns b]diminishing returns c]negative returns
Thomas Malthus
law of diminishing returns
why law of diminishing returns is considered a short-run phenomenon?
Three stages of production are increasing marginal returns, diminishing marginal returns, and negative marginal returns.
No. Fundemantaly returns increase with risk, they do not diminish.
a]increasing marginal returns b]diminishing returns c]negative returns
Thomas Malthus
Thomas Malthus
Exploitation to the point of diminishing returns.
Diminishing returns.
law of diminishing returns
technical innovation
Thomas Malthus
how diminishing returns influences the shapes of the variable-cost and total-cost curves