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The law of diminishing returns implies that adding one factor of production does not always mean an increase in output. In agriculture, adding fertilizer may increase output, but if too much fertilizer is used, it may end up poisoning the plants.
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Assumptions of the Law of Diminishing Return?
one more piece of production will reduce output
Criticism of law of diminishing marginal utility?
the criticisma of the law of diminishing marginal utility
What is the significance of the law of diminishing return?
It significantly helps in gathering more profit in any given profit-base organization.
Why law of diminishing returns is considered a short-run phenomenon?
why law of diminishing returns is considered a short-run phenomenon?
Causes of economic meltdown?
it is caused by the disorder in the economy of a nation which later causes the GDP of the particular nation to decrease.there is a link between this phenonenom and the law of diminishing return.
Explain the merits and demerits of law of diminishing marginal utility?
explain the demerits of diminishing marginal utility
Why does the marginal rate of substitution diminish?
As a matter of fact, law of diminishing marginal rate of substitution conforms to the law of diminishing marginal utility. According to law of diminishing marginal utility, as a consumer increases the consumption of a good, its marginal utility goes on diminishing. On the contrary, if the consumption of a good decreases, its marginal utility goes on increasing.
Explain the difference between diminishing return of scale and economies of scale Provide examples if necessary diminishing return of scale?
Diminishing return of scale is a short run concept. It explains the relationship between the rate of output with increaring inputs of production. Economies of scale, on the other hand, explains the relationship between the LR average cost of producing a unit of good with increasing level of output. Diminishing return of scale is a short run concept. It explains the relationship between the rate of output with increaring inputs of production. Economies of scale, on the other hand, explains the relationship between the LR average cost of producing a unit of good with increasing level of output.
Who is responsible for the law diminishing returns?
Thomas Malthus
Who is responsible for the law of diminishing returns?
Thomas Malthus
Why isoquants convex to the origin?
law of diminishing returns
What offsets the law diminishing returns?
technical innovation
