Assuming technology and production techniques are fixed and cannot change, if beyond some point of production, a firm experience

Question

4 years ago

5

Assuming technology and production techniques are fixed and cannot change, if beyond some point of production, a firm experience

s declining units of additional output with each additional unit of labor input, then the firm is experiencing the law of:_________

Business

1 answer:

UkoKoshka [18] · Answer 1 · 2022-01-31T08:32:37+03:00

Answer:

law of diminishing marginal returns

Explanation:

Based on the information provided regarding this situation it seems that the firm is experiencing the law of diminishing marginal returns. This is basically stating that producing more units per output will sooner or later cost a lot more than the initial value, because inputs are being used less as well as less effectively. This will continue to be so as production increases.