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redweasel197Lv1
11 Dec 2019
The law of diminishing returns indicates that:
(i) as extra units of a variable resource are added to a fixed resource the marginal product will decline beyond some point.
(ii) because of economies and diseconomies of scale, a competitive firm's long-run average cost curve will be U-shaped.
(iii) the demand for goods produced by purely competitive industries is downsloping.
(iv) beyond some point, the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.
The law of diminishing returns indicates that:
(i) as extra units of a variable resource are added to a fixed resource the marginal product will decline beyond some point.
(ii) because of economies and diseconomies of scale, a competitive firm's long-run average cost curve will be U-shaped.
(iii) the demand for goods produced by purely competitive industries is downsloping.
(iv) beyond some point, the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.
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Deanna HettingerLv2
28 Apr 2020
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