Take Test: Unit III Assessment

Take Test: Unit III Assessment

Question 1

Laws of Diminishing Marginal Returns and Per Worker Production Function

Answer

All the different laws and functions of economics are essentially related to each other. The per worker production function is essentially a representation of how each worker work and accumulates the production. Similarly, the law of diminishing marginal returns represents how the utility of any consumption decreases after a certain level. Both, the law of diminishing marginal returns and the per worker production function tends to represent then underlying utility the consumption and production provides respectively in each of the laws in ...