Which consideration must be addressed when deciding for whom to produce who can be most creative with the product?
Answer Expert Verified When deciding for whom to produce, the consideration that must be addressed is WHO NEED THE PRODUCT THAT IS TO BE PRODUCED.
What is the law of increasing opportunity cost quizlet?
The law of increasing opportunity cost says that: as output increases for either one of the goods on a production possibilities curve, the opportunity cost of additional units of that good will be greater and greater.
What is the main effect of increasing opportunity costs quizlet?
the primary effect of increasing opp. costs is less than complete specialization.
What is the rationale for the law of increasing opportunity costs?
35 Cards in this Set
|What are the four factors of production (categories of resources)?||Natural (land), Capital (machines), Labor (people), Entrepreneur (puts it all together).|
|The economic rationale for the law of increasing opportunity costs is…||That economic resources are not completely adaptable to alternative uses.|
What are the causes of increasing returns?
There are three important reasons for the operation of increasing returns to a factor:
- Better Utilization of the Fixed Factor: In the first phase, the supply of the fixed factor (say, land) is too large, whereas variable factors are too few.
- Increased Efficiency of Variable Factor:
- Indivisibility of Fixed Factor:
Why increasing returns to owners is important?
Increasing returns are the tendency for that which is ahead to get further ahead, for that which loses advantage to lose further advantage. More than causing products to become standards, increasing returns cause businesses to work differently, and they stand many of our notions of how business operates on their head.
What is the difference between increasing returns and diminishing returns?
Increasing returns to scale is when the output increases in a greater proportion than the increase in input. Decreasing returns to scale is when all production variables are increased by a certain percentage resulting in a less-than-proportional increase in output.
What is meant by diminishing returns to a factor?
Diminishing returns to a factor refers to a phase when total product increase at a decreasing rate and marginal product falls, but remains positive, with increase in variable factor.