This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The law of diminishing returns is the same as the decreasing returns to scale. Do you agree? ... (Read 112 times)

a0266361136

  • Hero Member
  • *****
  • Posts: 538
on: Jun 29, 2018
The law of diminishing returns is the same as the decreasing returns to scale. Do you agree? Explain.
 
  What will be an ideal response?

Question 2

We know that the firm shown in the figure above is a natural monopoly because as output increases, the
 
  A) marginal cost is constant.
  B) demand curve slopes downward.
  C) marginal revenue curve lies below its demand curve.
  D) average total cost decreases so that the firm can supply the market at lower cost than two firms.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bubulittle310@msn.cn

  • Sr. Member
  • ****
  • Posts: 281
Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is incorrect. The law of diminishing returns states that as a firm uses more of a variable factor, with a given quantity of fixed factors, the marginal product of the variable factor eventually diminishes. In the long run all factors are variable, and decreasing returns to scale occurs when an increase in all factors by the same percentage results in a smaller percentage increase in output.

Answer to Question 2

D


a0266361136

  • Hero Member
  • *****
  • Posts: 538
Reply #2 on: Jun 29, 2018
Thank you :)


bubulittle310@msn.cn

  • Sr. Member
  • ****
  • Posts: 281
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

Thyroid conditions may make getting pregnant impossible.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Earth’s history is divided into nested sets of time--eons, eras, periods, and epochs--and is called Earth’s history is divided into nested sets of time--eons, eras, periods, and epochs--and is called
Subscales of the Wechsler Adult Intelligence Scale Subscales of the Wechsler Adult Intelligence Scale
The gray scale. The gray scale.
The diminishing effects on body weight of a low-calorie diet and a high-calorie diet. The diminishing effects on body weight of a low-calorie diet and a high-calorie diet.
Example of a Mastery Scale Example of a Mastery Scale
The Geologic Time Scale The Geologic Time Scale
Video: Oxygen - hemoglobin dissociation curve & Hemoglobin's affinity with oxygen - acidity

For a complete list of videos, visit our video library