If a firm experiences diminishing marginal productivity, does this imply that they experience diseconomies of scale?...
If a firm experiences diminishing marginal productivity, does this imply that they experience diseconomies of scale? Explain
Homework Answers
Law of diminishing marginal productivity is an economic principles which states that advantage gained from slight improvement on the input side of the production equation will only advance marginally per unit and may level off or even decrease after a specific point.Diminshing marginal productivity can also be associated with diseconomies of scale.Diminishing marginal productivity can potentially lead to a loss of profit after breaching a threshold .if diseconomies of scale occur, companies don't see a cost improvement per unit at all with production increases.instead there is no return gained for unit produced and losses can mount as more units are produced.
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If a firm experiences diminishing marginal productivity, does
this imply that they experience diseconomies of scale?...
4. If a firm experiences diminishing marginal productivity, does this imply that they experience diseconomies of...
4. If a firm experiences diminishing marginal productivity, does this imply that they experience diseconomies of scale? Explain.
1- If a firm experiences diminishing marginal productivity, does this imply that they experience diseconomies of...
1- If a firm experiences diminishing marginal productivity, does this imply that they experience diseconomies of scale? Explain. 2- Allocative efficiency in perfectly competitive markets depends on the assumption that marginal cost to firms equals marginal cost to society. Using gasoline as an example, what might be some social costs that are not included in the marginal cost to the firm? Explain.
1- If a firm experiences diminishing marginal productivity, does this imply that they experience diseconomies of...
1- If a firm experiences diminishing marginal productivity, does this imply that they experience diseconomies of scale? Explain. 2- Allocative efficiency in perfectly competitive markets depends on the assumption that marginal cost to firms equals marginal cost to society. Using gasoline as an example, what might be some social costs that are not included in the marginal cost to the firm? Explain
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...
Does “downsizing” work well as a solution to diseconomies of scale? a. Yes, always b. No...
Does “downsizing” work well as a solution to diseconomies of scale? a. Yes, always b. No c. Yes, sometimes d. Only if marginal productivity is negative 2.Volume discounts on the purchase of raw materials, components, and inventory often create a. diseconomies of scale b. economies of scale c. rising costs due to the Law of Diminishing Returns d. a smaller MOS 3.The most important diseconomy of scale at the firm level is caused by or stems from a. capital indivisibility...
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.
19. Which sections of the curve does the firm have economies of scale? Diseconomies of scale?...
19. Which sections of the curve does the firm have economies of scale? Diseconomies of scale? Neither economies nor diseconomies of scale? LRAC cost pel unit faverage cost) n A. B
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...
If a firm is experiencing increasing return to scale: a. there are diseconomies of scale b....
If a firm is experiencing increasing return to scale: a. there are diseconomies of scale b. there would be savings in costs if the firm reduced its size c. long-run average costs are decreasing in the quantity produced d. marginal costs are increasing in the quantity produced e. marginal costs are decreasing in the quantity produced
If a firm experiences diminishing marginal product, then it means that total output decreases with additional...
If a firm experiences diminishing marginal product, then it means that total output decreases with additional variable inputs. True or false? I think it is true.
4. If a firm experiences diminishing marginal productivity, does this imply that they experience diseconomies of scale? Explain.
19. Which sections of the curve does the firm have economies of scale? Diseconomies of scale? Neither economies nor diseconomies of scale? LRAC cost pel unit faverage cost) n A. B
If a firm is experiencing increasing return to scale: a. there are diseconomies of scale b. there would be savings in costs if the firm reduced its size c. long-run average costs are decreasing in the quantity produced d. marginal costs are increasing in the quantity produced e. marginal costs are decreasing in the quantity produced
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