Carefully Explain, Using Appropriate Diagrams and Figures, the Relationship Between the Law of Diminishing...

In economics, law stating that if unitary factor of production is join on while the others remain constant, the overall returns will relatively dismay after a real manoeuver. Thus, for example, if more(prenominal) and more labourers ar added to reap a wheat field, at some spot distributively special labourer will add relatively disregard takings than his predecessor did, exclusively because he has less(prenominal) and less of the fixed amount of land to work with. The principle, graduation use thought to apply only to agriculture, was later accepted as an economic law underlying all productive enterprise. The charge at which the law begins to ope step is difficult to ascertain, as it varies with unwrap production technique and other factors. Marginal exist (short waste cost curve) and peripheral product ( fringy returns) be inversely related. MC equals to dVC/dQ = dVC/dL*dL/dQ. The first term is simply the salary W of labourers, That is, adding one more doer adds that workers wage to variable cost. The second term, dL/dQ= 1/f (L) = 1/(dQ/dL), the number of workers required to produce one more unit of output is the inverse of the increase in output created by an additional worker. Combining these two results, we chance on that MC = W/f (L). That is, MC is the wage rate change integrity by labours b stageline product, so that marginal cost and marginal product are inversely related. In other words as pine as the marginal returns increasing, marginal cost is decreasing adding additional labourer, after the certain point, where the return start to diminishing, the marginal cost starts to increasing.If you want to bring about a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper