![]() This industry may not need any land – the entrepreneur could work from home or an internet cafe.ĭiminishing returns and factors of production In a simple model of economics, we can assume there are two main types of factors of production for a firm – labour and capital. If we employ more labour with a fixed stock of capital, there will come a point where we experience diminishing returns. If you employ a 4th worker, the marginal product (the extra output) is lower than the 3rd worker. If we employ the 9th worker, output doesn’t increase at all – MP is zero. Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously. The cookie is used by cdn services like CloudFlare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. ![]() It does not correspond to any user ID in the web application and does not store any personally identifiable information. ![]() This cookie is used for load balancing services provded by Amazon inorder to optimize the user experience. Amazon has updated the ALB and CLB so that customers can continue to use the CORS request with stickness. ![]()
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