Distinguish between diseconomics of scale and the law of diminishing returns
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Despite their similarities, the two concepts are quite different to one another. Diminishing returns to scale looks at how production output decreases as one input is increased, while other inputs are left constant. Diseconomies of scale occurs when the per unit cost rises as output is increased.
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Explanation:
Despite their similarities, the two concepts are quite different to one another. Diminishing returns to scale looks at how production output decreases as one input is increased, while other inputs are left constant. Diseconomies of scale occurs when the per unit cost rises as output is increased
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