What is the Law of Diminishing Returns?
What is the Law of Increasing Costs?
How are these 2 laws related?
The law of diminishing returns, or diminishing marginal returns, tells us that at after a certain level of production the quantity produced begins to increase by less per unit of input. The reasons behind the law are the nature of the inputs. Fixed inputs cannot be varied in the short run. Therefore, production become less efficient because increasing variable inputs alone does not allow for maximum ...
The relationship between the law of diminishing returns and the law of increasing costs.