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Diminishing Marginal Returns Explains Why a Firm's Long-Run Average Total

question 85

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Diminishing marginal returns explains why a firm's long-run average total cost curve is U shaped.


Definitions:

Biologists

Scientists who study living organisms and their relationship to the environment.

Nature

Encompasses the natural world, including plants, animals, the landscape, and other features and products of the earth, as opposed to human creations.

Limiting Abiotic Factors

Non-living environmental elements that restrict the growth, distribution, or abundance of organisms, such as temperature, water availability, and nutrients.

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