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Why does the production possibility curve decrease at increasing rate?
As more inputs of production are switched from the production of one good to another, their marginal output is decreasing (see: diminishing returns to capital).
What is the law of returns to scale?
THE LAW OF RETURNS TO mean that law in which we study about the different period of the production in which increasing , decreasing , and constant returns to scale is studied
Distinguish between law of diminishing returns and laws of returns to scale?
The principle of diminishing returns to inputs is when more on one input is added, while other inputs are held constant, the marginal product of the input diminishes. Decreasing returns to scale is when the a firm doubles its inputs, output increases by less than double. With diminishing returns, only one input is being changed while holding the other is fixed. But for decreasing returns, both inputs may change
What is the difference between diminishing returns and diseconomies of scale?
The principle of diminishing marginal returns to inputs is when more on one input is added, while other inputs are held constant, the marginal product of the input diminishes. Diseconomies of scale or decreasing returns to scale is when the a firm doubles its inputs, output increases by less than double. With diminishing returns, only one input is being changed while holding the other is fixed. But for decreasing returns, both inputs may change
The market allocates capital to companies based on?
Risk, efficiency and expected returns.
What is Decreasing return?
what is the different between diminishing marginal productivity and decreasing return to scale?
Why does the production possibility curve decrease at increasing rate?
As more inputs of production are switched from the production of one good to another, their marginal output is decreasing (see: diminishing returns to capital).
How does an increase in revenue affect working capital?
Revenue affects the capital by decreasing the capital.
What is the law of returns to scale?
THE LAW OF RETURNS TO mean that law in which we study about the different period of the production in which increasing , decreasing , and constant returns to scale is studied
Distinguish between law of diminishing returns and laws of returns to scale?
The principle of diminishing returns to inputs is when more on one input is added, while other inputs are held constant, the marginal product of the input diminishes. Decreasing returns to scale is when the a firm doubles its inputs, output increases by less than double. With diminishing returns, only one input is being changed while holding the other is fixed. But for decreasing returns, both inputs may change
Rns to scale?
The principle of diminishing marginal returns to inputs is when more on one input is added, while other inputs are held constant, the marginal product of the input diminishes. Decreasing returns to scale is when the a firm doubles its inputs, output increases by less than double. With diminishing returns, only one input is being changed while holding the other is fixed. But for decreasing returns, both inputs may change
What is the difference between diminishing returns and diseconomies of scale?
The principle of diminishing marginal returns to inputs is when more on one input is added, while other inputs are held constant, the marginal product of the input diminishes. Diseconomies of scale or decreasing returns to scale is when the a firm doubles its inputs, output increases by less than double. With diminishing returns, only one input is being changed while holding the other is fixed. But for decreasing returns, both inputs may change
What source does Capital Markets provide returns to shareholders?
dividends
Investment to achieve high returns quickly?
venture capital
What does ROACE stand for?
ROACE stands for Returns on Average Capital Employed
What statement describes a pair of stocks that meet this recommendation?
Investment counselors recommend buying stocks whose returns show a negative correlation in order to minimize the risk of big losses. ANSWER: A stock whose returns tend to increase when the returns of a second stock are decreasing.
The market allocates capital to companies based on?
Risk, efficiency and expected returns.
