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What is the best explanation of why the law of diminishing returns does not apply in the long run?
Wiki User
∙ 11y ago
All factors of production are variable in the long run.
Wiki User
∙ 11y ago
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Which best explanation for the general rise of prices over time?
Inflation
Why is ppc concave to origin?
The PPC / PPF is concave to the origin because not all resources are perfectly suited to the production of both goods. This leads to increasing opportunity costs caused by diminishing returns. So as more and more resources are switched from the production of one good to the production of another good, returns diminish. This is the law of diminishing returns. This law is identified by the PPC being concave. As an example, consider production of root beers to mountain bikes. When most workers are making bikes, the few remaining in brewing buisness are the best brewers. If more bikes are to be produced, then the most skilled beer workers have to be shifted to bike manufacturing, thereby affecting the amount to beer significantly. A concave PPF is generally applicable in cases where the production requires specialization and varied raw products (eg. guns and butter as given on wikipedia.) In cases of similar goods, it is generally a straight line, eg. production of cakes and pastries.
Which of the following best states the expectations of venture capitalism's?
Large returns in a short period of time
What are the four things shown on the production possibility curve?
The production possibility curve is a graph that shows the combinations of two goods that a firm or a nation can create. On the X axis is one good, and on the Y axis is another good. The curve itself shows the combination of goods at maximum efficiency. This curve implies that anything above the curve cannot be produced. If production is inside the curve then the firm or individual is being inefficient and not producing to maximum capacity. If the curve is a straight line this implies that there are no diminishing returns, that no matter how much you produce one good the firm or individual will always produce the same number of goods. The slope of a straight production possibility curve is the opportunity costs of those goods; as an individual or firm decreases the time to produce one good it is able to increase the time to produce the other good. This is compared to a bowed curve which implies diminishing returns. Diminishing returns implies that the returns to labor decrease as a firm or individual produces more of a certain good. This is the concept of the low hanging fruit principle, it takes less time to produce initially because the firm or individual picks the lowest hanging fruit first and then as the number of low hanging fruits dissipates it takes more effort and labor to pick the harder to get fruits. A curve can also imply the diversity of skills in a given population. If we assume that the low hanging fruit principle doesn't exist, we cannot assume that all people in a population will be equally good at a certain task. In order to produce more of a given product a firm will first hire the best individuals for the task and then inevitably will have to hire individuals that are worse at the job, reducing the returns for a given person.
Write a statement that best illustrates the concept of diminishing marginal utility?
The more bags of potato chips a person eats, the less additional satisfaction the person gets from eating another bag.
How can I apply for equity funds?
Equity funds is one of the best form of investment for wealth management. It offer good returns over medium to long-term. You can apply for it from the bank directly.
What are the release dates for Best of Five - 2008 Best Returns 3-6?
Best of Five - 2008 Best Returns 3-6 was released on: USA: 17 October 2010
Which is the best explanation for how air masses move across the US?
which is the best explanation for how air masses move across the united states
Which give the best explanation of the ideas in the quotation?
Please provide the quotation you would like an explanation of.
What is the meaning of ethical considerations?
There is no best marketing method. They all work, provided, they are all executed properly. The best marketing method is the one that works best for you. The main thing is not to fall into the trap of jumping from method to method like so many marketers do. You have to be disciplined enough to be patient. You have to give whatever method(s) you're using a reasonable chance to work. Then, when you find something that works, milk it to the point of diminishing returns.
What is the best explanation for why Mesopotamians built canal?
irrigation
A testable explanation for a question that is a best guess?
a hypothasis
Which one is the best explanation of energy?
The ability to do work.
In order to get the best refund, people should file their tax returns as early as possible.?
In order to get the best refund, people should file their tax returns as early as possible.
Will the decision to focus on brand McDonald's yield the best returns?
No
State the rules to apply for the best results from massage?
state the rules to apply for the best results from massage
What are the release dates for Best of the West - 1981 The Calico Kid Returns - 1.4?
Best of the West - 1981 The Calico Kid Returns - 1.4 was released on: USA: 1 October 1981
