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In the most general terms, you reach a point where a product or process has been improved so much that devoting more resources to more research and development will not translate into enough added gain to cover the cost of the added research. The idea can be applied to a wide range of activities where there is some increase in profit or benefit resulting from some increase of effort or product improvement. At some point, you decided that you have reached an optimum balance between what you are gaining and what you have to do to 'improve' your gain.
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Assumptions of the Law of Diminishing Return?
one more piece of production will reduce output
What is the best explanation of why the law of diminishing returns does not apply in the long run?
All factors of production are variable in the long run.
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?
Assumptions of the Law of Diminishing Return?
one more piece of production will reduce output
What is the best explanation of why the law of diminishing returns does not apply in the long run?
All factors of production are variable in the long run.
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.
Examples of the law of diminishing return?
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.
Why law of diminishing returns is considered a short-run phenomenon?
why law of diminishing returns is considered a short-run phenomenon?
Explain the merits and demerits of law of diminishing marginal utility?
explain the demerits of diminishing marginal utility
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.
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.
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
