Why TVC increases at decreasing rate …
CBSE, JEE, NEET, CUET
Question Bank, Mock Tests, Exam Papers
NCERT Solutions, Sample Papers, Notes, Videos
Posted by .... .... 4 years, 11 months ago
- 2 answers
Yogita Ingle 4 years, 11 months ago
In the initial stages of production, a firm may be enjoying increasing returns to a factor (because of underutilisation of the fixed factor). It is a situation when MP (of the variable factor) tends to rise. Cost is just the opposite of productivity. Rising MP means falling cost. When the cost of producing an additional unit is falling, TVC should be increasing only at the decreasing rate.
Test
Related Questions
Posted by Mahi Bansal 1 year, 4 months ago
- 0 answers
Posted by Charvi Charvi 1 year, 4 months ago
- 0 answers
Posted by Shiv Narayan Kumar 1 year, 4 months ago
- 1 answers
Posted by Vivek Saroj 1 year, 4 months ago
- 0 answers
myCBSEguide
Trusted by 1 Crore+ Students
Test Generator
Create papers online. It's FREE.
CUET Mock Tests
75,000+ questions to practice only on myCBSEguide app
Gaurav Seth 4 years, 11 months ago
In the initial stages of production, a firm may be enjoying increasing returns to a factor (because of underutilisation of the fixed factor). It is a situation when MP (of the variable factor) tends to rise. Cost is just the opposite of productivity. Rising MP means falling cost. When the cost of producing an additional unit is falling, TVC should be increasing only at the decreasing rate.
0Thank You