law of diminishing returns (4.1.3)

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  • Created by: lee42
  • Created on: 03-06-19 12:01
What is total returns?
it is the total returns created by all inputs
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what is marginal returns?
it is the output form adding an additional unit or input
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What is average returns?
it is the total return divided by the number of inputs
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what is dimishing marginal returns?
is the concept that the more of something you add, the lower the impact of each additional unit, assuming other things being equal
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What always falls when in short run output increases
average fixed costs
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Other cards in this set

Card 2

Front

what is marginal returns?

Back

it is the output form adding an additional unit or input

Card 3

Front

What is average returns?

Back

Preview of the front of card 3

Card 4

Front

what is dimishing marginal returns?

Back

Preview of the front of card 4

Card 5

Front

What always falls when in short run output increases

Back

Preview of the front of card 5

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