Economy, asked by kanchu6469, 1 year ago

Do cobb douglas functions show diminishing marginal utility

Answers

Answered by Anonymous
4
Heya....

Yes Cobb Douglas production function show Diminishing Marginal Utility....

As when we continued to add variable factors with fixed factor then at a point fixity will crossed and MP starts to decline and became zero or negative...

Similarly when we consume more and more good there satisfaction starts to decline , became negative and zero...
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