Topics
Diminishing Returns
As more of a variable factor (e.g. labour) is added to a fixed factor (e.g. capital), a firm will reach a point where it has a disproportionate quantity of labour to capital and so the marginal product of labour will fall, thus raising marginal costs.
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What is an Economic Model?
Study Notes
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Theory of the Firm - Explaining Variable Costs
Topic Videos
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The Paradox of Value
30th August 2016
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Production Function in the Short Run
Study Notes
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Short Run Costs - Law of Diminishing Returns (Online Lesson)
Online Lessons
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Explaining the Short Run and the Long Run in Micro
Topic Videos