State the Law of Diminishing Returns

question 94

Essay

State the law of diminishing returns.How do diminishing returns differ from diseconomies of scale? Be sure to define diseconomies of scale in your answer.

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Definitions:

Cost Equation

A mathematical formula that relates cost to its determinants, such as output level, activity level, or other cost drivers.

Delivery Costs

Expenses related to transporting goods from a seller to the purchaser, including shipping, handling, and packaging fees.

Regression Output

This is the result of regression analysis, typically showing the relationship between independent variables and the dependent variable.

Cargos

Goods or commodities transported for commercial gain, typically by ship, aircraft, or other vehicles.