The output rises at an increasing rate in the first stage of law of diminishing marginal returns due to
Answers
Because at that stage .... resources has not utilised fully ...so as more and more of variable factor is combined wid fixed factor....output rises at an increasing rate....but only upto the level until resources are not utilised fully
Answer:
The financial law of lessening minor profitability is a monetary rule that must be considered by chiefs in efficiency the board. For the most part, it expresses that any preferred position picked up from slight enhancement for the info side of the condition will just progress to a point. After this point, extra info won't build efficiency.
For instance, a production line can make more gadgets if the include extra workers. Yet, at a point, more individuals on the creation line won't deliver more gadgets, and may in reality moderate the procedure as specialists don't have the important space to work.