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luda_lava [24]
3 years ago
9

Businesses do not maximise outputs from the given inputs​

Business
1 answer:
Otrada [13]3 years ago
4 0

Answer:

Businesses that do not maximise outputs from the given inputs are inefficient, and probably have diseconomies of scale, the opposite of economies of scale, that ocurrs when output increases proportionally less than the inputs that are invested.

This situation arises as a result of an economic law, the law of diminishing retuns. According to this economic law, there is a point in the production process in which the use of additional units of input do not result in a proportional yield, in other words, when a business presents diminishing returns, the more inputs it adds, the less output grows in proportion to the inputs.

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