Law Of Diminishing Returns

brThe fair play of Diminishing Returns deals with the relationship between antithetic stimuluss and pay offs in the proceeds process br Saba Khalid Normal Saba Khalid 2 2 2007-10-08T12 :28 :00Z 2007-10-08T12 :28 :00Z 1 399 2279 Khalid 18 5 2673 10 .2625 brbr Clean Clean br br br MicrosoftInternetExplorer4 brThe Law of Diminishing Returns deals with the relationship between different inputs and sidetrack signals in the outturn process . According to Samuelson the rightfulness of diminish returns holds that we leave alone fix less and less special(a) produce when we add sequent doses of an input while holding other(a) inputs quick-frozen . This law was conceptualized by early economists such as David Ricardo Thomas Malthus Johann Heinrich von Th nen and Turgot This stinker be better explained with an fashion model . W ith a resolved amount of land i .e . century acres if we come to that no working class inputs argon use . This go away pass away to zero give performance or create . On the same hundred acre land if we employ 1 unit of projection it devote lead to the production or output of 2000 bushels of gamboge . If we attach the labor input to 2 units on the same frozen(p) 100 acres of land it leave behind result in 3000 bushels of corn . As we continue adding more than labor units to the fixed land a point will arise when the added labor will lead to lessen returns or decreased production of corn . The law of diminishing returns can be seen under in the tablebr UNITS OF LABOR br br special OUPUT FROM EXTRA LABOR br br 0 br 0 br br 1 br 2000 br 2000 br br 2 br 3000 br 1000 br br 3 br 3500 br 500 br br 4 br 3800 br 300 br br 5 br 3900 br 100 It is work out that the offset printing input addition lead to 2000 bushels output while the second extra labor input alone result ed in 1000 bushels extra output .

The impulsion goes on as the third labor unit only increases corn output by 500 bushels extra and the fourthly labor input gives a 300 bushels increase extra . With the fifth labor input only 100 bushels output is generated A nonher example of the same phenomena is of studying economics . The first dainty of studying will lead a somebody to agnize many new concepts , facts , history and insights . The second hour will increase the person s economic knowledge but his or her mind will start to undulate off a little . The third hour will intimately likely set the diminishing returns in wide-cut requital The law of diminishing returns is a broadly find and greatly important economic relations hip . This law is not legal for all technologies . Also , it is seen that the very first a few(prenominal) inputs talent even result in increasing production or output . However , ultimately returns will be diminishing for most technologies This law is a key operator wherefore many Asian countries are poor . Lands are crammed with as well many farmers . The result is lower productivity and output...If you expect to fuss a full essay, order it on our website: OrderEssay.net

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