b) Diminishing marginal returns

0.0(0)
Studied by 0 people
linked notesNote
call kaiCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/3

encourage image

There's no tags or description

Looks like no tags are added yet.

4 Terms

1
New cards

  • define marginal product


  • output produced from one additional unit of labour


2
New cards

  • explain the law of diminishing marginal returns


  • more variable input (labour) added to fixed input (capital)

  • initially

    • MP increases

    • cost of additional input < revenue from additional output

    • MR > MC

  • up to a point

    • MP decreases

    • cost of additional input > revenue from additional output

    • MR < MC


3
New cards

  • n/a


  • n/a


4
New cards

  • n/a


  • n/a