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

Rationale for government intervention, Rationale for government interventio...

Rationale for government intervention There are six major functions the government can perform in an economy. 1. The government provides a legal and social framework within which

Explain the generalised least square procedure, (a) What is  meant by heter...

(a) What is  meant by heteroscedasticity and what are the consequences of applying OLS estimation in its presence? (b) Explain in details the Generalised least Square procedure

Positive and negative externalities, Problem 1: Health insurance leads ...

Problem 1: Health insurance leads to health promotion. Using diagrams, describe the impact of health insurance on the demand for health care. (a) Distinguish between negati

Explain the end of the malthusian age, The End of the Malthusian Age W...

The End of the Malthusian Age We clearly no longer live in a Malthusian age. For at least 200 years improvements in the efficiency of labor made possible by new technologies a

Microeconomic international policy, Ask questi‘Social welfare functions emb...

Ask questi‘Social welfare functions embody a normative conception of the relative importance of equity and efficiency’. With the aid of diagrams, illustrate and explain this propos

Development plan, Development plan: A Development Plan is a document w...

Development plan: A Development Plan is a document which contains a policy framework and programme of development for a time period for a country. It sets out the general meas

Theory of supply, how to make attractive assignment on theory of supply

how to make attractive assignment on theory of supply

What are the parts of valuable economics paper, What are the parts of valua...

What are the parts of valuable economics paper? The consequence of economics research is an economic conclusion. Usually a valuable economics paper comprises three parts: a.

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