True or False & why: If you can increase production 10% by increasing all inputs by 20% the production process exh...

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True or False & why: If you can increase production 10% by increasing all inputs by 20% the production process exh...

True or False & why: If you can increase production 10% by increasing all inputs by 20% the production process exhibits diminishing marginal productivity

business economics

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Answer 1

Answer #1

False,

The production exhibits decreasing return of scale. a diminishing marginal productivity lead to a decreasing return to scale. here, the firm is increasing all the input and getting a less result if its was only one input it would have lead to a diminishing marginal productivity.

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Answer 2

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Saved The law of diminishing marginal productivity explains why short-run production costs increase directly with a...

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True or false? Explain. It is possible to have decreasing marginal products for all inputs, and...

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TRUE or FALSE: If the price of corn chips falls, suppliers will increase the quantity of...

True or False & why: If you can increase production 10% by increasing all inputs by 20% the production process exh...

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