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M5 DQ4: Discussion Question: How do the concepts (i) the law of diminishing returns (ii) the marginal rate of technical substitution and (iii) economies of scale relate? How do the three concepts differ?

josh
September 25, 2013 0 Comment

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Discussion Question: How do the concepts (i) the law of diminishing returns (ii) the marginal rate of technical substitution and (iii) economies of scale relate? How do the three concepts differ? What are the implications of the three concepts for production theory? Explain your answer and support your answer with theory and examples.
A typical answer should have about 500 words, but it is the quality of the answer that matters, not the number of words. Satisfactory answers will demonstrate clear understanding of the topics and issues related to the DQ. Good answers will be able to explain the reasons in more depth. Excellent answers will be able to raise appropriate critical questions. Weak answers will demonstrate only a partial grasp of what is important in the context of the DQ.

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