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The law of diminishing returns specially applies to agriculture and other extractive industries. One thing that is common to all these industries is the supremacy of nature. It is therefore often remarked that the part that nature plays in production corresponds to diminishing returns and the part which man plays confirms to the law of increasing returns. The reason is that, nature where it is supreme is subject to diminishing returns, while industry where man is supreme, is subject to increasing return. Besides the supremacy of nature, there are several other reasons why agriculture is subject to the law of diminishing returns.The agricultural operations are spread out over a wide area, and supervision cannot be very effective. Scope for the use of specialized machinery is also very limited. Therefore economics of large scale production cannot be reaped.
What else can I help you with?
Why law of diminishing returns is considered a short-run phenomenon?
why law of diminishing returns is considered a short-run phenomenon?
Why isoquants convex to the origin?
law of diminishing returns
Who is responsible for the law of diminishing returns?
Thomas Malthus
What offsets the law diminishing returns?
technical innovation
Who is responsible for the law diminishing returns?
Thomas Malthus
Who is responsible for law of diminishing returns?
Thomas Malthus
The importance of the law of diminishing returns?
The law of diminishing returns helps managers maximize their profits. At the point where their costs begin to rise, they can switch to another product to make more money.
What is the law of diminishing returns?
the law of diminishing returns states that as a set of variable factors is added to a set of fixed factor, the marginal product and average product will first increase then eventually decrease
What the cause of the diminishing returns law?
will the significance of the law of diminishing returns is that this determines the range of the products that is been produced if it is marketable.
Who is responisble for the law of diminishing returns?
An economist by the name of Turgot was responsible for the law of diminishing returns. Thomas Malthus and David Ricardo also had an influence of this principle which evolved from agriculture and food production.
What offset the law of diminishing returns?
technical innovation
Why does low of diminishing operate?
Get the question right. Then you might get a sensible answer. Do you mean "Law of Diminishing Returns"? To answer this you need to state the context.
