What does the law of diminishing returns imply for the shape of ...

[rmenurse]

What does the law of diminishing returns imply for the shape of the marginal cost curve?
 
  What will be an ideal response?

Question 2

The government makes all economic decisions in a centrally planned economy.
 
  Indicate whether the statement is true or false

[Pamela.irrgang@yahoo.com]

Answer to Question 1

The law of diminishing returns states: As a firm uses more of a variable factor of production, with a given quantity of the fixed factor of production, the marginal product of the variable factor eventually diminishes. The law of diminishing returns means that each additional worker produces a successively smaller addition to output. So to get an additional unit of output, ever more workers are required. The cost of an additional unit of outputmarginal costis increasing, so the marginal cost curve eventually slopes upward.

Answer to Question 2

TRUE

[rmenurse]

Thank you

[Pamela.irrgang@yahoo.com]

Happy to help you