According to the Law of Diminishing Returns As more units of a variable factor are used with a fixed factor, beyond some point total production will begin to decline.. O Investing more money into the same financial investment will always result in a diminished fiancial return. O If a firm makes another type of product available to its customers, then it will generate less revenue from its new type of product compared to its existing products. As more units of a variable factor are used with a fixed factor, beyond some point it becomes harder and harder for a firm to increase production.
According to the Law of Diminishing Returns As more units of a variable factor are used with a fixed factor, beyond some point total production will begin to decline.. O Investing more money into the same financial investment will always result in a diminished fiancial return. O If a firm makes another type of product available to its customers, then it will generate less revenue from its new type of product compared to its existing products. As more units of a variable factor are used with a fixed factor, beyond some point it becomes harder and harder for a firm to increase production.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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Transcribed Image Text:According to the Law of Diminishing Returns
As more units of a variable factor are used with a fixed factor, beyond some point total production will begin to
decline..
Investing more money into the same financial investment will always result in a diminished fiancial return.
O If a firm makes another type of product available to its customers, then it will generate less revenue from its new
type of product compared to its existing products.
As more units of a variable factor are used with a fixed factor, beyond some point it becomes harder and harder
for a firm to increase production.
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