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The law of diminshing return is an term used in economics. It refers to how the marginal production of a factor of production starts to progressively decrease as the factor is increased, in contrast to the increase that would otherwise be normally expected. For example if you have a factory with a certain amount of floor space and employing a certain amount of employees, the output of the factory will increase if you increase the size of the floor space and/or the number of employees, perhaps on a one-for-on basis. However, at some point that relationship stops and eventually the rate of production increase begins to decrease (diminish) as you increase one of the variables. If, for example, you double the floor space and the number of employees, you might double (increase by 100%) the output of the factory. If you double them again, the output may only increase by 75% instead of 100%.
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What is the difference between law of return to variable proportion and law or return to scale?
There is a big difference between both the laws.The basi difference between them is that i dont know 1st but i know the 2nd one
Assumptions of the Law of Diminishing Return?
one more piece of production will reduce output
What is the significance of the law of diminishing return?
It significantly helps in gathering more profit in any given profit-base organization.
Law of variable proportion and law of returns to scale?
Under Law of variable proportion: only one variable input varies all other variable kept constant. Under Law of Return to Scale: All the variable inputs varies except the enterprise. Law of variable proportion is for short period; law of return to scale is for long period. Law of variable proportion shows the relationship if one variable input increase (eg: Labour) by keeping all other variable constant; total product and marginal product increase upto a certain point after that it will increase at a diminishing rate. it shows in three stage first increase then constant and then decrease. Law of return to scale shows the relationship between inputs and output at three different stages: 1. output increase more than inputs, 2. output and input are constant, 3. output is less than proportionate input.
What is the relation between price and demand?
There is inverse relation between demand and price it means if one increase the other will decrease and vice versa. the inverse relation exit between demand and price due to three reason Diminshing of marginal utility Income effect Substitute effectc
Why isoquants convex?
diminshing marginal rate of substitution between factors
The Law of Return brought an increase in Israel's?
The Law of Return allowed for an increase in Israel's Jewish population.
Where is the ozone layer in the upper atmosphere diminshing the most?
Ozone layer is diminishing most over poles. It has been seen in Antarctica.
Is it the law that doctors return telephone calls from their patients?
What the law requires depends on the country and locality in which you are located, but in general there is no law requiring doctors to return telephone calls from their patients.
What is the Jewish law of return?
Israel's law of return guarantees citizenship to all Jews. (There are issues and debates about the definition of who is a Jew, and how you prove you are Jewish.)
Florida new car return law?
You cannot return a new or used car in Florida except under the Lemon Law. the Buyers Remorse law does not apply to the purchase of a vehicle.
Is there a 3 day return law on returning a car in Florida?
No there is no 3 day return law for returning a car in Florida. If the car was sold using deceptive practices then it may be possible to return it.
Can you return a used car to the dealer if you not satisfied with it?
By law you should beable to return anything
What states have a thirty day return on used cars?
No state has a 30 return law.
What law allows Jews anywhere in the world to become Israeli citizens?
The Law of Return.
Return car to dealer in Ohio?
You can return the car for repair, but not for a refund. The cooling off period law, or buyer's remorse law, does not apply to the sale of a vehicle.
Does Oregon have a 3 day return law on new cars and where would you find that at?
Does Oregon have a 3 day return law on new cars and where would you find that at?
