--%>

Explain the assumptions of Law Diminishing Returns

Explain the assumptions of Law Diminishing Returns.

E

Expert

Verified

The Law of Diminishing Returns is based upon the given assumptions as follows:

Returns are based upon the given assumptions as illustrated:

a. The production technology keeps unchanged

b. Each variable factor is homogeneous.

c. Some one factor is constant

d. The fixed factor keeps constant.

   Related Questions in Managerial Economics

  • Q : Merits and demerits of Scarcity

    What are the merits and demerits of Scarcity Definition of economics?

  • Q : Derived Demand in Competitive Labor

    Derived demand refers to: (w) consumer demand for products, based on expected utility. (x) government demand for social goods, based upon tax revenue. (y) business demand for resources, based upon consumer demand for products. (z) supplier demand for

  • Q : Statements about Human Capital Which of

    Which of the given statements is not CORRECT: (w) Acquiring productive skills is known as investment in human capital. (x) General training increases a worker’s marginal productivity equally for many firms. (y) Specific training increases the productivity of the

  • Q : Wage payments by total production cost

    Wage payments like a proportion of total production cost are positively associated to the: (1) ease of substitution between capital and labor. (2) wage elasticity of demand for labor. (3) extent of automation in the industry. (4) human capital created

  • Q : Determine what would contain in

    Please help me to solve the problem of economic that is given below: Economic capital would comprise: (w) corporate bonds. (x) money. (y) machinery. (z) sports cars. Can someone

  • Q : Income and Substitution Effects When

    When the income effect of a higher wage rate is extremely powerful in that case the substitution effect, the: (1) supply curve of labor will be positively sloped. (2) demand for leisure increases like income rises. (3) human capital effect is stronger

  • Q : Explain the Price Elasticity of Demand

    Explain the Price Elasticity of Demand.

  • Q : Aggregate Supplies of Labor Into the

    Into the short run, the labor supply in an economy based least on: (1) population size and labor force participation rate. (2) individuals’ preferences between leisure and income from work. (3) the demand for labor. (4) rates and structures of w

  • Q : Illustrates the term variable cost

    Illustrates the term variable cost?

  • Q : Finance and Economics Activity dear

    dear Please read carefully about in structure and requirement of the assessment. I need quality work with academic writing with less than 5% similaraies and make sure if any studens ask same assessment to avoid plagiarism