Economy, asked by Sarah912, 10 months ago

State the reasons for reduction of capital Marginal Productivity with rise in investment.

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Answered by mddanishalam191416
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Answer:

Diminishing marginal productivity can potentially lead to a loss of profit after breaching a threshold. If diseconomies of scale occur, companies don't see a cost improvement per unit at all with production increases. Instead, there is no return gained for units produced and losses can mount as more units are produced.

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