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What effect does the law if diminishing returns have on total variable cost?
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Solve log7 (X+1) + log7 (x-5)=1
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Explain how the diminishing returns influences the shape of the variable cost and total cost curves?
how diminishing returns influences the shapes of the variable-cost and total-cost curves
Does total output starts falling when diminishing returns occur?
Yes
Define the Law of Diminishing Returns?
the characteristic of any production system in which increases in variable inputs result in increasing reduction of total output. An indicator of when to stop making additional inputs to the system, when the input exceeds the additional output.
What is law of returns explain it with the help of schedule and diagram?
returns to factor means change in physical output of a good or a commodity when the quantity demanded of one factor is increase while that of the other factors remain constant . It is a short run phenomenon and can be possible in three ways they area) Increasing return to factor - increasing returns to a factor refers to a situation on when each additional unit of a variable factor adds more and more to the total output that is when marginal product of a factor increases as more of the variable factor is constantb) constant returns to a factor - constant returns to a factor refers to a situation in which additional units of a variable factors adds the same amount of output that is when the marginal product of the variable factor is constantc) Diminishing returns to a factor refers to a situation in which each additional unit of a variable factor adds lesser and lesser amount of output that is when marginal product of a factor falls as more of it is used
When do diminishing marginal return occurs?
Diminishing returns occur when a function satisfies Innada conditions or, to bemore specific, when:The first derivative of the function is positiveThe second derivative of the function is negative.Diminishing describes the tendency of increases in returns to decline asymptotically towards zero.
Explain how the diminishing returns influences the shape of the variable cost and total cost curves?
how diminishing returns influences the shapes of the variable-cost and total-cost curves
Does total output starts falling when diminishing returns occur?
Yes
Define the Law of Diminishing Returns?
the characteristic of any production system in which increases in variable inputs result in increasing reduction of total output. An indicator of when to stop making additional inputs to the system, when the input exceeds the additional output.
What is law of returns explain it with the help of schedule and diagram?
returns to factor means change in physical output of a good or a commodity when the quantity demanded of one factor is increase while that of the other factors remain constant . It is a short run phenomenon and can be possible in three ways they area) Increasing return to factor - increasing returns to a factor refers to a situation on when each additional unit of a variable factor adds more and more to the total output that is when marginal product of a factor increases as more of the variable factor is constantb) constant returns to a factor - constant returns to a factor refers to a situation in which additional units of a variable factors adds the same amount of output that is when the marginal product of the variable factor is constantc) Diminishing returns to a factor refers to a situation in which each additional unit of a variable factor adds lesser and lesser amount of output that is when marginal product of a factor falls as more of it is used
When do diminishing marginal return occurs?
Diminishing returns occur when a function satisfies Innada conditions or, to bemore specific, when:The first derivative of the function is positiveThe second derivative of the function is negative.Diminishing describes the tendency of increases in returns to decline asymptotically towards zero.
What is the literary definition of total effect?
the extent to which the dependent variable changes
If marginal utility is positive but diminishing then?
Total utility increases at a diminishing rate
Why does marginal cost rise as production increases?
Marginal cost is equal to the ratio of change in total cost or total variable cost to change in quantity of output. Marginal cost increases as total product increases since it reflects the law of diminishing marginal returns.
What effect will an increase in output have on average fixed average variable and average total cost?
average fixed will go down, average variable will remain the same, and average total will go down.
What is the explanation for the law of variable proportions?
The law of variable proportions or diminishing returns has been stated by Bentham in the following manner."As the proportion of one factor in a combination of factors is increased, after a point, first the marginal and then the average production of that factor will diminishing".The behaviour of output as a result of change in the proportion of variable factors to the fixed factor can be studied through three stages.Assumptions of the Law:The state of technology is assumed be given and unchanged.The law specially operates in the short run because some factors are fixed and the proportion between factors is disturbed.Variable factor units are homogeneous or identical in amount and quality.The law is based on the possibility of varying the proportions in which the various factors can be combined to produce a product.The behaviour of these total, average and marginal products of the variable factor as a result of the increase in its amount is generally divided into three stages.Stage-I (Increasing Return)Total Product increases at an increasing rate to a particular point say F. Corresponding to the point F Marginal Product increases up to this level. From the point F Total Product goes on rising at a diminishing rate and Marginal Product starts falling -but is still higher than Average Product and the AP continues to rise. 1st stage ends where MP curve cuts AP curve from above.Stage-II (Diminishing Return)The second stage begins from the point of intersection of AP and MP curves and ends at that point where" MP is zero. At this stage both MP and AP go on falling and both of them are positive. The total product goes on rising at a diminishing rate. This stage is known as the stage of diminishing return. This is stage where a firm wishes to operate.Stage-III (Negative Return)In the third stage Marginal Product of variable factor is zero. MP curve cuts the OX-axis at point M. In this stage the Total Product starts diminishing. Total Product continues to decline. As MP is negative this stage is also known as the stage of negative return.
What is the law of variable proportion?
according to this law, if more and more units of a variable factor are employed with the fixed factor the total physical product(which the same as the total product) increases at a decreasing rate in the beginning, then increases at a diminishing rate and finally starts falling. assumption of the law: 1. state of technology remains constant. 2. its the short hand phenomenon. 3. distinction between fixed factor and variable factor. 4. all units of the variable are homogeneous.
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.
