Diminishing returns occurs in the short run because The average product of labor will decrease after some amount of labor is hired in the short run b. There are fixed inputs to production in the short run The marginal product of labor will decrease after some amount of labor is hired in the short run There are variable inputs to production in the short run
Diminishing returns occurs in the short run because The average product of labor will decrease after some amount of labor is hired in the short run b. There are fixed inputs to production in the short run The marginal product of labor will decrease after some amount of labor is hired in the short run There are variable inputs to production in the short run
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 10SQ
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