Description
Another important law in economics is the “law of marginal returns or the law of increasing costs". Discuss how might you know that you are at a point of diminishing returns, or where more study will not benefit you like it did before? Can you identify any of the costs discussed in this lesson in your decision about how much study is enough?
Explanation & Answer
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Law of Marginal Returns
Introduction
Determining Diminishing Returns
Conclusion
References
Running head: LAW OF MARGINAL RETURNS
Law of Marginal Returns
Student’s Name
Institution
Date
1
LAW OF MARGINAL RETURNS
2
Law of Marginal Returns
Introduction
The law of marginal returns states that as other factors of production are held constant, an
increase in the input will reach a point where the amount of the output will start to decrease
(Moscati, 2018). This is common, especially when additional input such as labor in a factory is
insignificant after adding the operation costs (like paying the workers) rather than maximizing on
the end product. It is essential to note the point where the law of diminishing returns takes effect
so that a company might operate with relevance to that point.
Determining Diminishing R...
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