Do cobb douglas functions show diminishing marginal utility
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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...
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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