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21 Sep 2018
THERE ARE ANSWERS TO THIS QUESTION ON THE INTERNET, PLEASE DO NOT COPY AND PASTE IT HERE!!
A firm chooses its output level, QS, through the choice of inputs.The relationship between inputs and outputs is determined by the production technology used by the firm, but the general relationship assumed to be positive. That is, as you increase the level of inputs (like labor and materials), output will increase.
But it is also generally assumed that there are diminishing returns to any input. Why are there diminishing returns to any input?
What is the explanation for this phenomenon?
Please give me an example that demonstrates the principle of diminishing returns of inputs.
THERE ARE ANSWERS TO THIS QUESTION ON THE INTERNET, PLEASE DO NOT COPY AND PASTE IT HERE!!
A firm chooses its output level, QS, through the choice of inputs.The relationship between inputs and outputs is determined by the production technology used by the firm, but the general relationship assumed to be positive. That is, as you increase the level of inputs (like labor and materials), output will increase.
But it is also generally assumed that there are diminishing returns to any input. Why are there diminishing returns to any input?
What is the explanation for this phenomenon?
Please give me an example that demonstrates the principle of diminishing returns of inputs.
Lelia LubowitzLv2
23 Sep 2018