Asked by
Kevin Ruffins
on Nov 25, 2024
Verified
Over the range of positive, but diminishing, marginal returns for an input, the total product curve increases at a decreasing rate.
Diminishing Returns
An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot increase proportionally.
Total Product Curve
A graphical representation showing how the total quantity of output changes with variation in the quantity of a single input, holding other inputs constant.
Marginal Returns
The additional output gained by adding one more unit of input, holding all other inputs constant.
- Master the connection between total, marginal, and average products and their impact on production efficiency.
- Recognize conditions under which production inputs lead to diminishing returns.
Verified Answer
AK
Learning Objectives
- Master the connection between total, marginal, and average products and their impact on production efficiency.
- Recognize conditions under which production inputs lead to diminishing returns.