Essays Tagged: "Diminishing returns"

Distinguish between the law of diminishing returns and returns to scale.

The law of diminishing returns only applies in the Short Run, when only one factor of production is variable an ... d increasing returns to scale, decreasing returns to scale, or constant returns to scale.The law of diminishing returns is also called the law of variable proportion, as the proportions of each factor ... scale hard to justify, so it remains a theoretical concept.The main differences between the law of diminishing returns and returns to scale are that one is a concept in the short term, while the othe ...

(3 pages) 29176 0 4.3 Oct/2003

Subjects: Businesss Research Papers > Markets & Exchanges

Product Lifecycle of the MP3 Player Discusses: Nolan/Norton Technology Cost, Product Life Cycle, and Stages of Production.

have significant market shares.Stages of ProductionEvery product/service is subjected to the Law of Diminishing Returns; it is an inescapable fate. The Law of Diminishing Returns states that at some p ... ual increases in variable inputs will result in smaller and smaller increases in output. The Law of Diminishing returns typically sets in at the growth stage and marginal product begins to decline. Ho ...

(4 pages) 288 0 4.7 Feb/2004

Subjects: Businesss Research Papers > Marketing

Briefing Paper on endogenous growth theory in connection of forth-coming meeting with CBI and a Treasury team.

the economy can be adequately characterised by a constant return to scale production function with diminishing returns to capital and labour. The second assumption is that firms are price takers in a ... io of capital per worker increases or total factor productivity increases. Since this model assumes diminishing returns to capital, there is a limit to how much capital accumulation can add to output ...

(5 pages) 54 0 5.0 Apr/2004

Subjects: Social Science Essays > Economics

What do you understand by the term least-cost solution and in what sense is it a "solution"?

greater physical return from its workers than from extra capital. In these circumstances the law of diminishing return is applied. The law states that when an increased amount of a variable factor is ... be increased indefinitely.Figure 3The isoquant must be convexed to the origin; this illustrates the diminishing marginal rate of factor substitution (MRS) in relation to the law of diminishing return. ...

(5 pages) 46 0 5.0 Apr/2004

Subjects: Social Science Essays > Economics

Notes for a macroeconomics course.

nsumers buy more of it, and less of its substitute(s) whose prices remained unchanged.C. The Law of Diminishing Marginal Utility: the more units of a product we buy, the less our additional satisfacti ...

(28 pages) 682 0 4.7 Oct/2005

Subjects: Social Science Essays > Economics

David Ricardo: Law of Diminishing Returns

remainder of this essay I willexamen some of Ricardo's economic theories with a focus on the law of diminishing returns.David Ricardo is responsible for the creation as well as the development of a nu ... accomplishments that Ricardo has received most credit for arethe labor theory of value, the law of diminishing return as well as the Barro Ricardo equivalence4. The labor theory of values are a set o ...

(6 pages) 23 0 3.0 Nov/2008

Subjects: Social Science Essays > Economics