Asked by
Norsha Miller
on Oct 08, 2024
Verified
The law of diminishing returns explains why short-run marginal cost curves are upsloping.
Marginal Cost Curves
A graphical representation showing how the cost of producing one additional unit of a good changes as production volume changes.
Law of Diminishing Returns
Law of Diminishing Returns states that in a production process, adding an additional factor of production, while holding all others constant, will at some point yield lower per-unit returns.
- Recognize and elucidate the importance of the law of diminishing returns within the framework of productivity and cost.
Verified Answer
JM
Learning Objectives
- Recognize and elucidate the importance of the law of diminishing returns within the framework of productivity and cost.