Get premium membership and access questions with answers, video lessons as well as revision papers.
The law of diminishing returns or variable proportions states that “as successive
and equally efficient units of a variable factor of production are added to a given quantity
of a fixed factor in the short-run and at constant technology, the total output/product (TP)
will initially increase at an increasing rate up-to a point/level where it starts increasing at a
diminishing rate and eventually declines”.
Wilfykil answered the question on February 6, 2019 at 08:20
- Define the term "production function"(Solved)
Define the term "production function"
Date posted: February 6, 2019. Answers (1)
- What policy recommendations would you suggest to reduce regional development
imbalances if any in developing countries?(Solved)
What policy recommendations would you suggest to reduce regional development
imbalances if any in developing countries?
Date posted: February 6, 2019. Answers (1)
- State the aspects of significance of factor mobility(Solved)
State the aspects of significance of factor mobility
Date posted: February 6, 2019. Answers (1)
- Explain the meaning of mobility of factors of production. To what extent are factors of
production mobile?(Solved)
Explain the meaning of mobility of factors of production. To what extent are factors of
production mobile
Date posted: February 6, 2019. Answers (1)
- What are factors of production?(Solved)
What are factors of production?
Date posted: February 6, 2019. Answers (1)
- The utility (U) obtained by Olympia by consuming food (F) and shelter (S) is given by utility
function U = FS
Calculate the marginal rate of substitution...(Solved)
The utility (U) obtained by Olympia by consuming food (F) and shelter (S) is given by utility
function U = FS
Calculate the marginal rate of substitution when Olympia spends the Sh. 1,200 budget by
purchasing three units of each.
Date posted: February 6, 2019. Answers (1)
- If Mrs. Breader views butter and margarine as perfect substitutes, draw a set of indifference
curves that describe her preference for these two commodities(Solved)
If Mrs. Breader views butter and margarine as perfect substitutes, draw a set of indifference
curves that describe her preference for these two commodities
Date posted: February 6, 2019. Answers (1)
- State the law of diminishing marginal utility(Solved)
State the law of diminishing marginal utility
Date posted: February 6, 2019. Answers (1)
- Explain any four uses of indifference curve analysis(Solved)
Explain any four uses of indifference curve analysis
Date posted: February 6, 2019. Answers (1)
- Briefly explain two exceptions to the definition of an indifference curve.(Solved)
Briefly explain two exceptions to the definition of an indifference curve.
Date posted: February 6, 2019. Answers (1)
- Explain the main characteristics of indifference curves(Solved)
Explain the main characteristics of indifference curves
Date posted: February 6, 2019. Answers (1)
- What is an indifference curve?(Solved)
What is an indifference curve?
Date posted: February 6, 2019. Answers (1)
- Illustrate and explain Consumer equilibrium under the ordinalist approach(Solved)
Illustrate and explain Consumer equilibrium under the ordinalist approach
Date posted: February 6, 2019. Answers (1)
- Illustrate and explain Consumer equilibrium under the cardinalist approach(Solved)
Illustrate and explain Consumer equilibrium under the cardinalist approach
Date posted: February 6, 2019. Answers (1)
- Define marginal utility and clearly explain the oxiom of diminishing marginal utility.(Solved)
Define marginal utility and clearly explain the oxiom of diminishing marginal utility.
Date posted: February 6, 2019. Answers (1)
- Given the following table: If there is a successful advertising campaign that convinces consumers to buy more of commodity Y, what would the effect of this be on consumption of commodities X and Z?(Solved)
If there is a successful advertising campaign that convinces consumers to buy more of
commodity Y, what would the effect of this be on consumption of commodities X and Z?
Date posted: February 6, 2019. Answers (1)
- Given the following table: What type of goods are X, Y, Z & W and why?(Solved)
What type of goods are X, Y, Z & W and why?
Date posted: February 6, 2019. Answers (1)
- With the aid of diagrams, explain the importance of the concept of elasticity of supply.(Solved)
With the aid of diagrams, explain the importance of the concept of elasticity of supply.
Date posted: February 6, 2019. Answers (1)
- Given that:
, Compute the point elasticity of demand and the point elasticity of supply at the equilibrium position.(Solved)
Compute the point elasticity of demand and the point elasticity of supply at the equilibrium position.
Date posted: February 6, 2019. Answers (1)
- Given that: , Identify which of the two functions is a demand and a supply function(Solved)
Identify which of the two functions is a demand and a supply function
Date posted: February 6, 2019. Answers (1)