Question

Using an economic principle discuss why we cannot grow all the world's tomatoes in one pot.

Answer 1

We cannot grow all of the world's tomatoes in one pot as per the economic principle of diminishing marginal returns.

The pot is regarded as fixed input and the labor as the variable inputs will be used to grow the tomatoes on the pot.As we use more labor,the marginal productivity of labor will decline and the total output will increase at a decreasing rate because the fixed factor is constant and cannot be changed so trying to grow tomatoes in one pot will bring inefficiency and raise the total cost.