...of production may be rising?
Answer: Because of increase in demand.
increase output
Diminishing marginal product of capital is an economic principle that refers to the concept that when the input is increased and the other inputs are kept at the same level than it may initially increase output. However, if the inputs continue to increase with no other changes there may be limited effect or eventually negative effect on the output.
true
The optimal level of output is where marginal costs = marginal damages.
It is because of law of dimnishing marginal utility,when the ouput inreases,it also starts increasng as marginal product starts declining after the optimum utilisation of resources.
increase output
Marginal cost is
Diminishing marginal product of capital is an economic principle that refers to the concept that when the input is increased and the other inputs are kept at the same level than it may initially increase output. However, if the inputs continue to increase with no other changes there may be limited effect or eventually negative effect on the output.
To increase profit the firm will decrease output to a point where MC=MR. This is the Profit Maximisation point
true
The optimal level of output is where marginal costs = marginal damages.
It is because of law of dimnishing marginal utility,when the ouput inreases,it also starts increasng as marginal product starts declining after the optimum utilisation of resources.
marginal product of labor (:
A way to find the best level of output is to find the output level where marginal revenue is equal to marginal cost.
By definition marginal cost is the change in total costs for each additional item produced. Marginal costs will decrease when changes in inputs result in costs increasing at a decreasing rate. An example might be gains in productivity when hiring an additional unit of labor results in a more than proportional increase in output. Marginal costs would increase when an additional unit of an input results in a less than proportional increase in output (assuming input prices are constant).
Since P>MC for an oligopoly, the output effect is that selling one more unit at the sales price will increase profit.The price effect is that an increase in production will increase the total amount sold, which will decrease the price and decrease the profit on all other units sold.If the output effect is greater than the price effect, the owner will increase production.If the price effect is greater than the output effect, the owner will not increase production (and may even decrease production).Oligopolists will continue to increase or decrease production until these marginal effects balance.
Negative