Econ問題(prodution in the short run and the long run)

2007-04-28 1:21 am
The table below shows the weekly production of a firm.The firm has two types of input.
machines Labour TP
1 2 20
2 3 28
3 4 31
4 5 31
5 6 30
Whether the above data illustrate the law of diminishing marginal returns.

回答 (1)

2007-04-28 6:26 am
✔ 最佳答案
The above data can't illustrate the Law of diminishing marginal returns. The law of diminishing marginal returns could be only applied in the SHORT RUN, but the firm is in the LONG RUN situation because there is no fixed factor in the production. We find the firm increase both machines and labour each time, so the firm increases its production scale.


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