According to the Law of Diminishing Returns As more units of a variable factor are used with a fixed factor, beyond some point total production will begin to decline.. O Investing more money into the same financial investment will always result in a diminished fiancial return. O If a firm makes another type of product available to its customers, then it will generate less revenue from its new type of product compared to its existing products. As more units of a variable factor are used with a fixed factor, beyond some point it becomes harder and harder for a firm to increase production.

According to the Law of Diminishing Returns As more units of a variable factor are used with a fixed factor, beyond some point total production will begin to decline.. O Investing more money into the same financial investment will always result in a diminished fiancial return. O If a firm makes another type of product available to its customers, then it will generate less revenue from its new type of product compared to its existing products. As more units of a variable factor are used with a fixed factor, beyond some point it becomes harder and harder for a firm to increase production.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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