increasing returns

Why Does The Law Of Diminishing Returns Apply To So Many Different Types Of Production Why Does That Mean Increasing Marginal Costs?

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Why Does The Law Of Diminishing Returns Apply To So Many Different Types Of Production Why Does That Mean Increasing Marginal Costs? The law of diminishing marginal returns states that if every other input is held constant, increases in the variable input will eventually result in smaller increases in output. Thus, the cost of those

When There Are Diminishing Returns To Physical Capital?

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When There Are Diminishing Returns To Physical Capital? Diminishing returns to physical capital suggests that: when the amount of human capital per worker and the state of technology are fixed, successive increases in the amount of physical capital per worker leads to a smaller increase in productivity. When economists talk about diminishing returns to physical