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The marginal product initially rises due to the efficient utilization of fixed resources when additional units of a variable input are added, leading to increased output. As more units are added, however, diminishing returns set in; each additional input contributes less to overall production because the fixed resources become over-utilized or congested. This results in a decline in marginal product, as the benefits of adding more input diminish. Ultimately, this interplay between efficiency and resource limitations explains the initial rise followed by the decline in marginal product.
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Total output may continue to rise even though the marginal physical product is declining?
true
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 is relation between marginal cost and marginal productivity of labour?
Marginal cost refers to the additional cost incurred by producing one more unit of a good or service, while marginal productivity of labor measures the additional output generated by employing one more unit of labor. The relationship between the two is that as the marginal productivity of labor increases, the marginal cost of production typically decreases, because more output is being generated per unit of labor. Conversely, if the marginal productivity of labor declines, marginal costs tend to rise, reflecting diminishing returns. This relationship is crucial for firms in determining optimal production levels and labor employment.
Does your marginal cost rise as you spend more hours supplying tutoring services?
Does your marginal cost rise as you spend more hours supplying services
Do interest rates rise when inflation declines?
Interest rates are simply the price of money. When inflation declines, interest rates typically decline also.
Total output may continue to rise even though the marginal physical product is declining?
true
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 is relation between marginal cost and marginal productivity of labour?
Marginal cost refers to the additional cost incurred by producing one more unit of a good or service, while marginal productivity of labor measures the additional output generated by employing one more unit of labor. The relationship between the two is that as the marginal productivity of labor increases, the marginal cost of production typically decreases, because more output is being generated per unit of labor. Conversely, if the marginal productivity of labor declines, marginal costs tend to rise, reflecting diminishing returns. This relationship is crucial for firms in determining optimal production levels and labor employment.
Does your marginal cost rise as you spend more hours supplying tutoring services?
Does your marginal cost rise as you spend more hours supplying services
Do interest rates rise when inflation declines?
Interest rates are simply the price of money. When inflation declines, interest rates typically decline also.
Why does Net benefits increase when marginal benefits exceed marginal cost?
When Marginal benefit (MB) exceed Marginal cost (MC). The society values the additional unit of product more than the cost of producing it. In this case, Net benefit will increase as long as firms produces more until the point where MB = MC. (Because every additional output will add more to MB than to MC, Net benefit will rise)
What has the author RS Howey written?
R.S Howey has written: 'The rise of the marginal utility school, 1870-1889' -- subject(s): Marginal utility, Economics, History
How would marginal utility and market demand be affected by rise in the price of a complementary good?
Both would decrease.
What does increasing marginal opportunity cost mean?
As we decide to choose more units of anything, the opportunity cost of each additional unit will rise. This means that the opportunity cost of the second unit will be greater than that of the first unit. The opportunity cost of the third unit will be greater than that of the second unit. And so forththe law of opportunity cost states that the more of a product that is produced,the greater is its opportunity cost,hence increasing marginal opportunity cost in simple terms refers to an extra or additional opportunity cost of foregoing other products to produce a unit of another product
The quantity of product X supplied can be expected to rise with a fall in what?
The quantity of product X supplied can be expected to rise with a fall in:
What makes product rise?
Yeast.
Why does the marginal cost increase as production levels rise?
The marginal cost increases as production levels rise because of diminishing returns. This means that as more units are produced, the additional cost of producing each additional unit also increases. This is due to factors such as limited resources, increased labor costs, and inefficiencies in the production process.
