Question

the the law of diminishing marginal returns group of answer choices causes average total cost to rise at a decreasing rate as output increases. causes the difference between average total cost and average variable cost to get smaller as output increases. explains why the average total cost, average fixed cost, and the marginal cost curves are u-shaped in the short run. explains why the average total cost and marginal cost curves are u-shaped in the short run.law of diminishing marginal returns

Answer 1

The law of diminishing marginal returns---explains why the average total costs and marginal cost curves are U shaped in the short run.

Option C is correct.

What is the law of diminishing marginal returns?

The law of diminishing marginal returns states that when a firm uses more than one variable factor of production for a given fixed quantity of factors of production, the marginal product of the variable factor of production that will eventually drop.

Why is diminishing profit margin important?

The law of diminishing marginal returns is one of the fundamental principles of economics and is very important in finding the right balance of production in an organization. Regardless of the nature of the business, understanding the law of diminishing marginal returns will have a direct impact on its performance.

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