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diminishing marginal returns

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Q: What is a level of production in which the marginal production decrease with new investment?
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What is a level of production in which the marginal production decreases with new investment?

diminishing marginal returns


What level at which the marginal production goes up with new investment?

The level at which marginal production goes up with new investment is generally referred to as the point of diminishing returns. Beyond this point, each additional unit of investment yields a smaller increase in output or productivity. This occurs as resources become more scarce or inefficiently allocated, resulting in a decrease in the marginal return on investment.


A monopolist will set its production at a level where marginal cost is equal to?

A monopolist will set production at a level where marginal cost is equal to marginal revenue.


How can capital durability eventually decrease the level of investment?

How can capital durability eventually decrease the level of investment?


What does profit maximizing quantity of output mean?

Its the level of production where marginal cost is equal to marginal revenue.


When a firm produces a level of output on the production function?

Marginal physical product is zero


At the most profitable level of production a firms marginal cost will be the market price?

equal to


If you have Marginal Cost and Marginal Damages how do you find the optimal level of output?

The optimal level of output is where marginal costs = marginal damages.


How do you achieve allocative efficiency?

Allocative efficiency is an output level where the price equals the marginal cost of production. This is because the price that consumers are willing to pay is equivalent to the marginal utility that they get. Therefore the optimal distribution is achieved when the marginal utility of the good equals the marginal cost.


When output is less than the efficient level?

When output is less than the efficient level, the amount consumers are willing to pay equals the cost of production. the cost of production is greater than the price consumers are willing to pay. the marginal cost of producing the good must be greater than the marginal benefit from the good.


How marginal revenue and marginal cost can help set the most profitable output level?

A way to find the best level of output is to find the output level where marginal revenue is equal to marginal cost.


How can marginal revenew and marginal costs help set the most profitable putput level?

The most profitable output level is when marginal costs equals marginal revenue. When marginal revenue is larger than marginal cost, that means that more product can be produced for more profit.