SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Industrial Organisation 2022

» Start this Course
(Practice similar questions for free)
Question:

Is the law of diminishing returns a short run or long run concept? Elaborate your answer.

Author: Hjalmer Pedersen



Answer:

Holding capital (labor) fixed, the extra output produced from each successive unit of labor (capital) eventually declines. It is short run because either K or L is fixed.


0 / 5  (0 ratings)

1 answer(s) in total