Examlex
Using the points on the diagram below,identify which combinations of these points illustrate diminishing returns to capital.Give a brief explanation to support your answer.
Short-Run
A period in economics where at least one factor of production is fixed, and firms can't alter all inputs.
Long-Run
A period in economic theory during which all factors of production and costs are variable, allowing for full adjustment to changes.
Economic Profit
The gap between the total earnings of a business and all its costs, encompassing out-of-pocket and opportunity costs.
Perfect Competitor
A Perfect Competitor refers to a hypothetical firm in a perfectly competitive market that cannot influence the market price and must accept it as given.
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