Question

There is no difference between the law of diminishing marginal returns and the law of diminishing...

There is no difference between the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution. True or False. Explain and offer examples to further illustrate your explanation.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The statement is False

Law of diminishing marginal returns refers to the decline in marginal productivity when one more labor is hired to increase the output such as when the firm hires 1 additional labor,total output will increase at a decreasing rate whereas Law of diminishing marginal rate of technical substitution refers to the rate at which the firm substitutes two inputs used in the production to maintain the output at the same level such as when the firm substitutes labor and capital to maintain the same output level.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain the difference between the Law of Diminishing Marginal Utility and the Law of Diminishing Marginal...
Explain the difference between the Law of Diminishing Marginal Utility and the Law of Diminishing Marginal Rate of Subsitution?
what is the difference between Law of Diminishing Margin and Law of Diminishing Marginal Utility?
what is the difference between Law of Diminishing Margin and Law of Diminishing Marginal Utility?
Task 2 What is the difference between diminishing marginal returns and diseconomies of scale? use your...
Task 2 What is the difference between diminishing marginal returns and diseconomies of scale? use your own word and detailed explanation
What is the difference between the "law of diminishing returns" and "decreasing returns to scale"?
What is the difference between the "law of diminishing returns" and "decreasing returns to scale"?
3) Explain the law of diminishing returns. 4) Explain the relationship between total, marginal, and average...
3) Explain the law of diminishing returns. 4) Explain the relationship between total, marginal, and average product.
*Explain clearly what is meant by the "law of diminishing returns". *Explain clearly how diminishing returns...
*Explain clearly what is meant by the "law of diminishing returns". *Explain clearly how diminishing returns affect the behavior of the average variable cost, as the production volume of good X increases? *Supply (in pure competition) is determined by a point in the ascending segment of marginal cost. True False? Explain carefully.
Diminishing Returns, also called the law of diminishing returns or principle of diminishing marginal productivity, economic...
Diminishing Returns, also called the law of diminishing returns or principle of diminishing marginal productivity, economic law stating that if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output. Can you give an example of a business production process and how the law affects the costs/ marginal productivity?
Explain the difference between the law of diminishing returns and economies of scale. How does the...
Explain the difference between the law of diminishing returns and economies of scale. How does the law of diminishing returns effect the average total cost curve? What are economies of scale (also called increasing return to scale) and diseconomies of scale (also called decreasing return to scale), and how do they effect the average total cost curve?
Under competition, a firm sells printer ink for $2 per unit. The firm produces printer ink...
Under competition, a firm sells printer ink for $2 per unit. The firm produces printer ink using capital (which it rents at $ 20 per hour) and labor (which is paid a wage of $ 25 per hour under a contract for 10 hours of labor services. Complete the following table and use that information to answer the questions that follow. K L Q MPk APk APl VMPk 0 10 0 1 10 50 2 10 150 3 10 300...
How does the law of demand reflect the law of diminishing marginal utility? Illustrate.
How does the law of demand reflect the law of diminishing marginal utility? Illustrate.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT