Explain the Difference Between Diminishing Marginal Productivity and Decreasing Returns

question 25

Essay

Explain the difference between diminishing marginal productivity and decreasing returns to scale.Describe how diminishing marginal productivity might apply in the agricultural sector.

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Definitions:

FOB Destination

A shipping term that indicates the seller is responsible for the goods and shipping costs until the merchandise reaches the buyer's location.

Trade Discounts

Price reductions granted by sellers to buyers in the commercial chain, often based on volume purchased or during promotional periods.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity.

Raw Materials

Materials in their natural, unprocessed state used as inputs in production processes.