Buscar
Estás en modo de exploración. debe iniciar sesión para usar MEMORY

   Inicia sesión para empezar


Por supuesto:

Economics A Level (DONEEEEEEE)

» Iniciar este curso
(Practica preguntas similares gratis)
Pregunta:

Why does the Law of Diminishing Returns occur?

Autor: eric_galvao



Respuesta:

-As you add more of a Factor of Production (labour) Marginal Product will start in the Beginning. Each Labour —> More Output than one before -Happens perhaps due to Specialisation - more Labour is employed = more tasks can be done -But, as you keep adding more Labour, the other Fixed Factors of Production (capital) will limit the extra output that’s Gained: MP Falls. -When that happens (MP beginning to Fall) that is the Point of Diminishing Returns.


0 / 5  (0 calificaciones)


-As you add more of a Factor of Production (labour) Marginal Product will start in the Beginning. Each Labour —> More Output than one before
-Happens perhaps due to Specialisation - more Labour is employed = more tasks can be done 
-But, as you keep adding more Labour, the other Fixed Factors of Production (capital) will limit the extra output that’s Gained: MP Falls. 
-When that happens (MP beginning to Fall) that is the Point of Diminishing Returns.
1 answer(s) in total