Law of Diminishing Return applies when the gaps among the successive ‘multiple-level of output’ isoquants
Under the Law of Diminishing Returns (or diminishing returns to scale along a ray), successively larger increments of inputs are required to yield equal additions to output.…
Choose your answer
Law of Diminishing Return applies when the gaps among the successive ‘multiple-level of output’ isoquants
Answer and explanation
Correct answer C
Under the Law of Diminishing Returns (or diminishing returns to scale along a ray), successively larger increments of inputs are required to yield equal additions to output. Consequently, the distance (gaps) between successive equal-increment 'multiple-level of output' isoquants increases.
Practice for these exams
-
UGC NET Management