Law for diminishing marginal returns, Microeconomics

Assignment Help:

The Law for Diminishing Marginal Returns

67_law of diminishing marginal returns.png

- As use of an input increases in equal increments, a point will be approched at which the resulting additions to output decreases (that is MP declines).

- When labor input is small, MP increases because of specialization.

- When labor input is large, MP decreases because of inefficiencies.

* The Law of Diminishing Marginal Returns

- Can be used for the long run decisions to assess tradeoffs of different plant configurations

- Assumes that the quality of variable input is constant

- Explains declining MP, not essentially a negative one

- Assumes a constant technology

111_law of diminishing marginal returns1.png


Related Discussions:- Law for diminishing marginal returns

Is lm model, why slopes of is and lm curves affect effectivness of fiscal a...

why slopes of is and lm curves affect effectivness of fiscal and mnetary policy?

Growth of employment opportunities, GROWTH OF EMPLOYMENT OPPORTUNITIES: ...

GROWTH OF EMPLOYMENT OPPORTUNITIES: Several disquieting features are observed in the Indian labour market over the past two decades particularly during the 1990s. These are di

How elasticity is always referred to as a positive value, How elasticity is...

How elasticity is always referred to as a positive value even though it can be negative?  In economics, elasticity is measures of the incremental percentage change in single va

Calculating ratios from annual report, i need to find Profitability, Earnin...

i need to find Profitability, Earning capacity, Capital structure, Robustness from annual reports. Not a long job..

Assignment, suppose you have a coffee shop. list of fixed input and variabl...

suppose you have a coffee shop. list of fixed input and variable input for operating the shop

Aggregate demand, Aggregate Demand When referred to in the circumstanc...

Aggregate Demand When referred to in the circumstance of GNP or GDP, aggregate demand dealings the sum of what is spent by various parties in the United States for product and

Explain change in demand and a change the quantity demanded, What is the di...

What is the difference between a change in demand and a change the quantity demanded?  There is a distinction among demand and quantity demanded. Demand explains the behavior o

Law of demand, Give two level of incomes 100$ and 150$ DRAW demand curve fo...

Give two level of incomes 100$ and 150$ DRAW demand curve for individual a & b and then draw market demand curve for these two different kind of income

Write Your Message!

Captcha
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