Eco

Diminishing marginal returns implies every additional input of production, gives us lesser output. Marginal cost is the cost of additional unit of production. So, dimnishing marginal returns implies you will need ore input per unit of production and thus, increasing cost.

Sahibdeep Singh

CA Inter

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30-Nov-22 12:33

Ans. B ??

James Js

CA Inter

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30-Nov-22 10:40

Could you pls explain how it is came

Thread Starter

suman knowledge

CA Inter

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30-Nov-22 10:51

Diminishing marginal returns implies increasing marginal costs.

Gaurav Choubey

CA Foundation

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30-Nov-22 12:57

The Law of Diminishing Returns and Average Cost. ... The fixed costs of capital are high, but the variable costs of labor are low, so costs increase more slowly than output as production increases. As long as the marginal cost of production is lower than the average total cost of production, the average cost is decreasing.

Gaurav Choubey

CA Foundation

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30-Nov-22 12:58