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1. Explain how 'Returns to Scale' and 'Law of Diminishing Returns' would affect cost in a manufacturing company.​
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1 vote
1 vote
1. Explain how 'Returns to Scale' and 'Law of Diminishing Returns' would affect cost in a manufacturing company.​

User NetherGranite
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1 Answer

19 votes
19 votes

Law of diminishing return has a positive relationship with marginal cost

Step-by-step explanation:

The law of diminishing returns implies that marginal cost will rise as output increases. Eventually, rising marginal cost will lead to a rise in average total cost.

User Ljubisa Livac
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