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What else can I help you with?
Why does the marginal rate of substitution diminish?
As a matter of fact, law of diminishing marginal rate of substitution conforms to the law of diminishing marginal utility. According to law of diminishing marginal utility, as a consumer increases the consumption of a good, its marginal utility goes on diminishing. On the contrary, if the consumption of a good decreases, its marginal utility goes on increasing.
What was the Production Budget for There Goes My Baby?
The Production Budget for There Goes My Baby was $10,500,000.
If fixed cost do not change then the marginal cost?
Contrast to what we would normally think, changes in fixed costs do not affect marginal cost. For example, if a product costs $10 to produce, and the fixed cost goes up to $25, then marginal cost stays the same.
What was the Production Budget for Igby Goes Down?
The Production Budget for Igby Goes Down was $9,000,000.
How diminishing law guides consumer to get equilibrium?
A consumer buys/consumes a product only if marginal utility derived from it is more than marginal utility of money. As he continues consuming the marginal utility derived from every additional unit goes on diminishing but marginal utility of money remains constant. Both utilities match at a place i.e; where marginal utility of product becomes equal to marginal utility of money the consumer stops consumption thus equilibrium is struck.
What does Aggregate marginal willingness to pay mean?
An aggregate demand curve is derived from the principle of diminishing marginal utility and it shows the amount of a good (or service) consumers would buy at different prices over some time period. Diminishing marginal utility implies that as the number of units consumed increases, the willingness to pay for additional units of that good (i.e., marginal WTP, MWTP) goes down.
The gross domestic product goes up when there is what?
More investment in businesses
Does short-term investment goes before inventory on the balance sheet?
no
When the gross domestic product goes up there is?
More investment in businesses
The gross domestic product goes up when what?
More investment in businesses
Explain hot the marginal product of labor and the average product of labor change as the quantity of labor employed increases initially and eventually?
Initially, the MPL and APL fall since there can be no jump in the level of capital used by these workers, and thus output put worker is less than before. However, as time goes on, actual invesmtent exceeds break-even investment and the level of capital increases until the old equilibrium value of capital per worker is reached. At this point, after convergence or time, the MPL and APL are restored to their original values (ceteris paribus).
What is production and production management?
Production is the producing of a single item such as beef production is the production of beef. Production management is managing what is being produced and when it goes for market.
