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What is the difference between diminishing returns and diseconomies of scale?
Wiki User
∙ 15y ago
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
Wiki User
∙ 15y ago
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Why law of diminishing returns is considered a short-run phenomenon?
why law of diminishing returns is considered a short-run phenomenon?
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 war the 3 stages of production?
Three stages of production are increasing marginal returns, diminishing marginal returns, and negative marginal returns.
What are the stages of production of a firm?
a]increasing marginal returns b]diminishing returns c]negative returns
Who is responsible for the law of diminishing returns?
Thomas Malthus
What are the similarities between cardinal and ordinal approach?
they both obey the diminishing returns theory
Why law of diminishing returns is considered a short-run phenomenon?
why law of diminishing returns is considered a short-run phenomenon?
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 war the 3 stages of production?
Three stages of production are increasing marginal returns, diminishing marginal returns, and negative marginal returns.
What are the Types of Returns to scale?
Economies of scale (costs decrease), diseconomies of scale (costs increase), constant returns to scale (costs stay the same)
Are there diminishing returns to risk taking?
No. Fundemantaly returns increase with risk, they do not diminish.
What are the stages of production of a firm?
a]increasing marginal returns b]diminishing returns c]negative returns
Who is responsible for the law diminishing returns?
Thomas Malthus
Who is responsible for the law of diminishing returns?
Thomas Malthus
Definition of overexploitation?
Exploitation to the point of diminishing returns.
Why isoquants convex to the origin?
law of diminishing returns
What offsets the law diminishing returns?
technical innovation
