Edington1323 Edington1323

18-10-2017
Business

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Over the positively sloped portion of the short-run average-cost curve, the effect of dominates the effect of .
a. increasing marginal productivity; decreasing fixed cost
b. diminishing marginal returns; decreasing fixed cost
c. diminishing marginal returns; falling average fixed cost
d. increasing marginal productivity; falling average fixed cost

Respuesta :

29-10-2017

c. diminishing marginal returns; falling average fixed cost. When total investment increases, the total return on investment as a fraction of the total investment decreases. This is the definition of diminishing marginal returns. In this positive portion of the curve, average fixed costs are falling, but total return on investment as a fraction of the total investment is dropping more.

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