Diminishing marginal returns

Advertising We will write a custom essay sample on Diminishing marginal returns specifically for you for only $16.05 $11/page Learn More The law of diminishing marginal returns states that when a firm mixes variable and fixed inputs, the marginal productivity of the variable input decreases with increases in use. It is the point where marginal physical product curve starts sloping downwards towards x- axis and beyond it. This is due to the fact that if more of the input is added to the production process, a maximum point is reached where any additional value of inputs will result in a decrease in total output. For example, in the farm activities, when more of a variable input, like fertilizer, is added holding other factor inputs constant, the output level is increased up to a point where any additional fertilizer application will result into a negative output levels (Answers to end of chapter questions 2010). Decreasing economies of scale Economies of s cale refer to cost benefits accruing to a firm when increasing its scale of operations over a long run period. Diseconomies of scale occur when increasing the level of output results into a higher average cost. Therefore, a firm with high level of fixed cost should increase its output in order to lower its long run average cost curve. Diseconomies may be caused by lack of cooperation, control and coordination due to the large number of employees in an organization which causes communication breakdown, thus lowering productivity and quality of output from employees. Example is that the size of an organization increases due to increase in the number of employees. References â€Å"Answers to end of chapter questions,† Monopolistic Competition and Oligopoly, 2010. Web.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Jeff B 2001, Microeconomic reform in Australia – An introduction . Web. Market supply in the long run. Web. Productivity Commission 1999, Microeconomic Reform and Australian Productivity: Exploring the Links, Commission research paper, Canberra. Web. The basics of monopolies. Web. This essay on Diminishing marginal returns was written and submitted by user Annika Garcia to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Free Essays on Rockefeller And Standard Oil... Rags To Riches... Greed Posing As Philanthropy

John D Rockefeller began as a humble oil business book-keeper in Cleveland, Ohio and in just seven years rose to control a tenth of the entire US oil industry. In the late 19th century the oil industry was a free-for-all, the law of the jungle ruled. Rockefeller used this 'individual freedom' to pursue several extremely successful, if deceitful tactics to accumulate capital. He would create new oil related companies such as engineering and pipeline firms that seemed to be independent operators. Rockefeller and his close colleagues secretly controlled the firms and gave Standard Oil of California, Rockefeller's main oil company, hidden rebates. Another tactic was to buy up a competing oil company, again secretly. Officials from this company could then be used very effectively to spy on, and give advanced warning of, deals being hatched by his real competitors. Probably the most effective secret deals done by Rockefeller and his partners were with the railroads. These 'in harmony' deals meant those refineries and oil traders not 'in harmony' with standard would find that railroads would refuse point blank to move their oil, whatever the price. Oil, of course, is free at source, so once the investment in refining and extraction plant has been made the only really important cost was transportation. Rockefeller's secret railroad rebates on the transportation of his oil kept his competitors guessing for years. None of them could understand how he kept pump prices so low. They were all bemused that Standard Oil had being growing at such a rate. How he managed to persuade the railroads to give him rebates and keep the deals secret is still not clear. Allun Nevins has produced an official biography ¹ of the Rockefeller empire but even he cannot help but question its morality. Of a railroad contract signed on 17 October 1877 he says, "The commission was excessive for the services performed. It was ethically indefensible." "Tod... Free Essays on Rockefeller And Standard Oil... Rags To Riches... Greed Posing As Philanthropy Free Essays on Rockefeller And Standard Oil... Rags To Riches... Greed Posing As Philanthropy John D Rockefeller began as a humble oil business book-keeper in Cleveland, Ohio and in just seven years rose to control a tenth of the entire US oil industry. In the late 19th century the oil industry was a free-for-all, the law of the jungle ruled. Rockefeller used this 'individual freedom' to pursue several extremely successful, if deceitful tactics to accumulate capital. He would create new oil related companies such as engineering and pipeline firms that seemed to be independent operators. Rockefeller and his close colleagues secretly controlled the firms and gave Standard Oil of California, Rockefeller's main oil company, hidden rebates. Another tactic was to buy up a competing oil company, again secretly. Officials from this company could then be used very effectively to spy on, and give advanced warning of, deals being hatched by his real competitors. Probably the most effective secret deals done by Rockefeller and his partners were with the railroads. These 'in harmony' deals meant those refineries and oil traders not 'in harmony' with standard would find that railroads would refuse point blank to move their oil, whatever the price. Oil, of course, is free at source, so once the investment in refining and extraction plant has been made the only really important cost was transportation. Rockefeller's secret railroad rebates on the transportation of his oil kept his competitors guessing for years. None of them could understand how he kept pump prices so low. They were all bemused that Standard Oil had being growing at such a rate. How he managed to persuade the railroads to give him rebates and keep the deals secret is still not clear. Allun Nevins has produced an official biography ¹ of the Rockefeller empire but even he cannot help but question its morality. Of a railroad contract signed on 17 October 1877 he says, "The commission was excessive for the services performed. It was ethically indefensible." "Tod...

World population Essay Example | Topics and Well Written Essays - 500 words

World population - Essay Example Hundreds of years ago Thomas Malthus forecast that the world’s population will surpass the earth’s feeding resources. In fact Malthus predicts that a world population collapse will result from the over demand for the world’s food resources by an overly large population.(World Population) After all these years, the world population continues to boom and although there are a large number living in abject poverty, it is not as a result of a lack of food. There are those who argue that the over population is on the decline as a result of increased infant mortality and low birthrates. Moreover, humanity will come to an end as a result of depletion of the earth’s ozone layer, pollution and toxic waste long before the population begins to die out as a result of an imbalance between food supplies and population numbers. When one looks at the distribution of the world’s population it is arguable that as long as the population growth is stable and sustained in countries such as Canada, the United States and European nations, the world’s food supply will not be endangered. Moreover, immigration to cities will not become a fact capable of threatening civilization as we know it. The significance of the population growth locations is relevant to the consumption of food. American’s consume almost 40 times as much food as Asians. Canadian’s and Europeans eat almost as much as the Americans. In other words there is more than enough food to go around. But thankfully, North American and Canada are not among the countries experiencing massive population growths.(World Population) Sixty percent of the world’s population is located in Europe. China alone hosts 20% of the world’s people. India, hovers dangerously close to China with 16% of the world’s population. Africa is not far behind with 12% of the world’s population. Europe hosts 11% of the world’s people and North America accounts for 8% of the world’s