Asked by
Bryan Dominguez
on Dec 11, 2024Verified
The law of diminishing marginal returns explains the general shape of the firm's
A) long-run cost curves.
B) short-run cost curves.
C) both short-run and long-run cost curves.
D) The law of diminishing returns has nothing to do with cost curves.
Law of Diminishing Marginal Returns
A rule of economics that asserts when a single production element is expanded and the rest stay unchanged, there will ultimately be a decline in total output after reaching a specific threshold.
Cost Curves
Graphical representations in economics that show how the costs of production vary with different levels of output.
- Comprehend the variance between short-run and long-run cost dynamics in a business setting.
Verified Answer
MM
Learning Objectives
- Comprehend the variance between short-run and long-run cost dynamics in a business setting.