Which Of The Following Best Expresses The Law Of Diminishing Returns? (Best solution)

Which of the following is the most accurate representation of the law of diminishing returns? As consecutive amounts of one resource (labor) are added to set amounts of another resource (capital), the resulting additional or marginal production will diminish until it reaches a predetermined point.

What is the best example of the law of diminishing returns?

According to which of the following statements is most accurate, the law of diminishing returns is being expressed? After a certain point, the additional or marginal production produced by consecutive additions of one resource (labor) to fixed levels of another resource (capital) will begin to fall.

What is the law of diminishing returns?

The law of diminishing returns, also known as the law of diminishing returns or the principle of diminishing marginal productivity, is an economic law that states that if one input in the production of a commodity is increased while all other inputs are held constant, a point will eventually be reached at which additions of the input yield less than the original input yield.

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What is the law of diminishing returns quizlet?

The Law of Diminishing Returns applies here. When one input factor is continuously increased while all other input factors are held constant, according to the law, the per unit output of the variable input factor will decrease.

Where does the law of diminishing returns applies?

Fixing Certain Factors of Production: Because certain factors of production are fixed, the rule of diminishing returns is applicable to them. It is impossible to grow all components of production at the same time, including land, labor, capital, and entrepreneurship.

When there are diminishing marginal returns quizlet?

When the marginal product of a new worker is less than the marginal product of the preceding worker, this is referred to as diminishing marginal returns.

What is an example of law of diminishing marginal utility?

Food is a frequent example of a good whose marginal value is declining with time. Consider the fruit of the womb, the apple. If you’re famished, an apple is a good investment because of its great nutritional worth. However, the more apples you consume, the less hungry you become, reducing the value of each successive apple consumed.

Why do we have the law of diminishing returns?

As more units of labor are added to a certain quantity of capital, diminishing returns occur as a result of the disruption of the entire production process. In fields of production such as farming and agriculture, the law of diminishing returns continues to be a significant factor to be considered.

Why does the law of diminishing returns operate?

When we are unable to modify all of the elements of production in the near run, the law of diminishing returns is applicable. Furthermore, it investigates the change in output as a result of altering the quantity of a single input. This is due to the fact that the overcrowding of inputs eventually has a detrimental influence on the output signal.

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What is the law of diminishing returns the law of diminishing returns states that quizlet does it apply in the long run?

as soon as the marginal product of labor begins to decline This implies that overall output will increase at a slower rate than the rate of inflation. In accordance with the rule of diminishing returns, the marginal cost of production rises as output rises.

What is diminishing returns in economics quizlet?

Returns on investment are dwindling. Increase in the amount of a single element of production causes a fall in marginal output in a production process, which is called the marginal output decline.

What is the law of diminishing returns the law of diminishing returns states that does it apply in the long run?

The law of declining marginal returns asserts that, for every extra unit invested in a single element of production while all other variables remain constant, the incremental output per unit will decline at some point in the production process.

What are the three stages of the law of diminishing returns?

The law of decreasing returns is a notion that is important in the field of production theory. It is possible to divide the law into three stages: growing returns, declining returns, and negative returns, among others.

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