This topic contains a solution. Click here to go to the answer

Author Question: What is the law of diminishing marginal product? What causes it?[br][br][b][color=#FA1639]Question ... (Read 60 times)

xclash

  • Hero Member
  • *****
  • Posts: 681
What is the law of diminishing marginal product? What causes it?

Question 2

In the market for land as a resource, the demand curve is elastic while the supply curve is perfectly inelastic. Identify the underlying assumption.
 a. There are limited ways in which land can be used as a resource.
  b. Land as an input has large number of substitutes.
  c. There is a fixed supply of land.
  d. Land includes all immovable assets.
  e. The productivity of land improves over time.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

otokexnaru

  • Sr. Member
  • ****
  • Posts: 314
Answer to Question 1

The law of diminishing marginal product states that as the amount of a variable input is increased, while the quantity of other fixed inputs are held constant, a point will ultimately be reached beyond which marginal product will decline. We expect an initial rise in marginal product because of gains from specialization. However, these benefits will eventually be exhausted at some larger output level. In addition, the size of the operation expands with more and more units of one resource being used, we will see a bottleneck effect where workers (or other resources) essentially get in each others' way.

Answer to Question 2

c




xclash

  • Member
  • Posts: 681
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


pangili4

  • Member
  • Posts: 346
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

For a complete list of videos, visit our video library