Diminishing marginal returns to the variable inputs causes the total cost curve to: a) get...
Question:
Diminishing marginal returns to the variable inputs causes the total cost curve to:
a) get steeper as output increases.
b) have a negative slop.
c) get flatter as output increase.
d) be horizontal.
Costs of Production:
They measure the monetary outflow taking place in a firm to pay factors of production for generating output. Hence, total cost measure the entire cost incurred, while average cost measures cost per unit of output. Marginal cost measures the cost for every additional unit of output.
Answer and Explanation: 1
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View this answera) get steeper as output increases.
Diminishing Marginal Returns means that the increase in output for every additional variable input hired begins...
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Law of Diminishing Returns: Definition & Examples
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Chapter 10 / Lesson 8
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Learn about the law of diminishing returns, or diminishing marginal returns. See the point of diminishing returns graphed and how to calculate it with examples.
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