Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.
Sagot :
Diminishing marginal returns to labor occur because the capital resources used by the firm are fixed in the short run.
Increasing input in the short term after an optimal capacity has been reached has the impact of decreasing marginal returns. At least one production factor, such as labor or capital, is maintained constant at the same time.
According to the law, this rise in input will lead to less significant increases in output. Returns to scale quantify the shift in productivity resulting from a long-term increase in all production inputs.
For instance, increasing the number of cooks in a restaurant while maintaining the same amount of kitchen space can boost output overall up to a point, but every new cook requires greater room, which eventually results in lesser increases in output as there are too many cooks in the kitchen.
If there are too many cooks, they may eventually stifle each other's efforts and produce less overall, resulting in negative returns.
To know more about diminishing marginal returns:
https://brainly.com/question/14250273
#SPJ4
Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.
