Concept of the law of diminishing returns

Assignment Help Microeconomics
Reference no: EM1370189

Discuss the concept of the law of "diminishing returns" and why does it occur only in the short run? Differentiate between "the long run return to scale" and "economies of scale."

Reference no: EM1370189

Questions Cloud

Return on investment and glod price : Roi resources currently have an unused gold mine. Mine was shut down four years ago due to depressed price of gold. However ROI are considering re-opening the mine.
Determining the cost of production : A fashion firm manufactures outfits using two inputs, design skills (L) and expensive materials (M). The cost of fabrication is small and might be ignored as a first approximation.
Give three network addresses : Subnet 2 is to support up to 95 interfaces, and Subnet 3 is to support up to 16 interfaces. Give three network addresses (of the form a.b.c .dJx) which fulfill these constraints.
Identify key safety issues and design a security process : Design a security process that would control the delivery of goods to your floors and monitor the comings and goings of employees onto your specific floors.
Concept of the law of diminishing returns : Describe the concept of the law of "diminishing returns" and why does it take place only in short run? Differentiate between "the long run return to scale" and "economies of scale."
Political parties and influence : how do the major political parties influence public values and ideas?
Optimum level of security guards : 21st century electronics has found a theft problem at its warehouse and has decided to hire security guards. The firm wants to hire the optimal number of security guards.
Different sources and types of authority : Health Care Organizations Management and what are the different sources and types of authority
How project visualization maps to architectural views : Choose one of the agile software development methodologies/processes and explain how changes can be managed in software development projects. Describe how project visualization maps to architectural views.

Reviews

Write a Review

Microeconomics Questions & Answers

  Monopolists and free ridership

Explain the circumstances in which a monopolist may encounter a free rider problem and determine the senses in which a perfectly-discriminating monopolist is efficient or inefficient.

  Question on macroeconomics

Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.

  Calculate the net present value and benefit-cost ratio

Calculate the net present value and benefit-cost ratio for four different discount rates

  How would you know demand has increased

How would you know demand has increased? (What is the first piece of information which would lead you to conclude that demand has increased?)

  Graphing the events of labor market

Describe the effect of each of the following events on the market for labor in the computer manufacturing industry. Use graphs.

  Leakage adjusted money multiplier

Assume the ratio of deposits that banks hold in the form of reserves is 7 percent. Assume further that people want to hold 8 percent of their deposits in the form of cash.

  Computing profit maximizing price and output level

Derive the profit maximizing price and the profits at this price. What is the demand elasticity at this price? What is the total demand when the monopolist charges a price P?

  Determine demand and revenue equation

Results for Linear Demand Curve Estimation. Kenny Mcormick manages a 100-unit apartment building and knows from experience that all units willbe occupied if rent is $900 per month.

  Changes in price-effect on supply-demand

Assume that someone told you that an increase in price of DVD players caused the decrease in demand for DVDs. Is this what you would predict? Why or why not?

  Elasticities and knowing nature of related good

Compute the price elasticity of demand using the point formula for Px = 20 and Py = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect t..

  Describing the task of managers

Why is it significant for managers to understand both short run and long run supply and demand? Please give one hypothetical or real life example which illustrates your response.

  Information about market demand curve

Supposing the marginal cost curve is for a competitive industry as a whole, find out the profit-maximizing level of output and price.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd