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Explain the circumstances for the bakery'
s increasing marginal return

User Yara
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What is the reason for increasing marginal returns?

Increasing marginal returns occur when the addition of a variable input (like labor) to a fixed input (like capital) enables the variable input to be more productive. In other words, two workers are more than twice as productive as one worker and four workers are more than twice as productive as two workers.

User Hardik Lakhani
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