Which of the following statements about the law of diminishing returns are Correct? The law of...
Which of the following statements about the law of diminishing returns are Correct?
- The law of diminishing returns says that a firm’s marginal cost curve will eventually slope upwardly as it produce more and more output.
- The existence of fixed inputs ensures that the law of diminishing returns will eventually set in as more variable inputs are added to the production.
- The law of diminishing returns ensures that diseconomies of scale will eventually set in as more inputs are added to the production.
- The concept of law of diminishing returns is applicable only to the short-run analysis.
Homework Answers
All of the above statements are correct. Diminishing returns will lead to fall in MP and ultimately rise in MC
Because of fixed factors in short run as we add more of variable factor MP will decline and will lead to diseconomies of scale i. e cost disadvantages.
Add Answer to:
Which of the following statements about the law
of diminishing returns are
Correct?
The law of...
Which of the following statements about the law of diminishing returns are Correct? pick one The...
Which of the following statements about the law of diminishing returns are Correct? pick one The law of diminishing returns says that a firm’s marginal cost curve will eventually slope upwardly as it produce more and more output. The existence of fixed inputs ensures that the law of diminishing returns will eventually set in as more variable inputs are added to the production. The law of diminishing returns ensures that diseconomies of scale will eventually set in as more inputs...
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because...
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because of a. diseconomies of scale. b. diminishing marginal revenues. c. rising fixed costs. d. increasing marginal productivity of variable inputs. e. diminishing marginal returns. . If the long-run average cost of production falls as the firm increases its level of output, then the firm exhibits a. constant returns to scale. b. constant marginal costs. c. economies of scale. d. diseconomies of scale. e. diminishing...
Which of the following is a long-run concept? A. Diminishing marginal productivity. B. Diminishing returns. C....
Which of the following is a long-run concept? A. Diminishing marginal productivity. B. Diminishing returns. C. Diseconomies of scale. D. Fixed costs.
28) The law of diminishing returns, as it applies to labor, means that A) the marginal...
28) The law of diminishing returns, as it applies to labor, means that A) the marginal product of labor will eventually be a horizontal line at zero. B) the average product of labor starts to decline before the marginal product of labor. C) total output eventually decreases. D) the average product of labor increases at a decreasing rate. E) the marginal product of labor eventually decreases as more labor is added with capital held fixed. 29) A firm's short-run labor...
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because...
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because of: A diminishing marginal revenues B diseconomies of scale C increasing marginal productivity of variable inputs. D diminishing marginal returns E. rising fixed costs rising fixed costs
The law of diminishing returns suggests that, in the short run, the marginal product of a...
The law of diminishing returns suggests that, in the short run, the marginal product of a variable input eventually diminishes because: at least one of the other inputs is fixed. demand is too weak to allow a firm to sell additional output. none of the other inputs is fixed. all inputs are being increased at the same time.
Assume labor is the only variable input and that the law of diminishing returns applies, explain...
Assume labor is the only variable input and that the law of diminishing returns applies, explain the relationship between the marginal product of labor and marginal costs, and the average product of labor and average variable costs. Illustrate graphically these two sets of relationships, and illustrate graphically the short-run average total cost curve. Explain why, in the short-run, that average total cost is eventually increasing as production increases
1. The law of diminishing marginal product is a statement A. that concerns changes in variable...
1. The law of diminishing marginal product is a statement A. that concerns changes in variable input and changes in output B. that concerns the long run C. that concerns changes in profits D. that relates to plant size 2. What does it mean to say that health care may be subject to diminishing returns? A. Health care costs are expensive B. New technology has improved lives, but not by much C. Eventually, higher individual spending on healthcare won’t improve...
1). Describe the law of eventually diminishing marginal returns. Does this law occur in the short...
1). Describe the law of eventually diminishing marginal returns. Does this law occur in the short run or in the long run. Why? Will a profit maximizing firm ever operate in the range of diminishing returns. Explain your answer.
What is the difference between "diminishing marginal returns" and "diseconomies of scale"? a. Both concepts explain...
What is the difference between "diminishing marginal returns" and "diseconomies of scale"? a. Both concepts explain why marginal cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable. b. Both concepts explain why average total cost increases after some point but diminishing marginal returns applies only in the short run when there is...
28) The law of diminishing returns, as it applies to labor, means that A) the marginal product of labor will eventually be a horizontal line at zero. B) the average product of labor starts to decline before the marginal product of labor. C) total output eventually decreases. D) the average product of labor increases at a decreasing rate. E) the marginal product of labor eventually decreases as more labor is added with capital held fixed. 29) A firm's short-run labor...
Most questions answered within 3 hours.
-
The financial statements of Apple Inc. show the following
numbers for fiscal year 2017 ($000,000):
Revenue...
asked 56 seconds from now -
Suppose that you are given the following results. Find the
correlation coefficient of the data.
sx...
asked 8 minutes ago -
The width of a tool used for semiconductor manufacturing
is assumed to be normally distributed with...
asked 10 minutes ago -
A
runaway train car that has a mass of 1,400 kg travels at a speed of...
asked 14 minutes ago -
The expected abnormal earnings of a firm that has earnings of
$40,000 with a required equity...
asked 12 minutes ago -
A spherical surface completely surrounds a collection of
charges. Find the electric flux through the surface...
asked 28 minutes ago -
Two capacitors with capacitances of 12 and 18.1 µF,
respectively, are connected in parallel. The system...
asked 14 minutes ago -
Let's say you are a small business owner that provides
business-to-business software-as-a-service to non-profit
organizations. Your...
asked 19 minutes ago -
A circuit is constructed with five resistors and a battery as
shown. The battery voltage is...
asked 27 minutes ago -
A. What is the U.S.
economic system and what do you think are the advantages and...
asked 27 minutes ago -
A student measures the following data in a calorimetry
experiment designed to determine the specific heat...
asked 42 minutes ago -
1) 2H2O(g) → 2H2 (g) + O2 (g) DH = 483.6 kJ
If 5 moles of...
asked 47 minutes ago