Keyword: MP
Cost Glossary - Notes (2/8/2013)
A glossary of terms in short-run production and cost
Law of Diminishing Returns (11/2/2011)
The Law of Diminishing Returns says that when some inputs are fixed in capacity in the short run, increasing the variable input working with the fixed inputs would first lead to increasing additional output per additional unit of variable input, but eventually decreasing additional output per additional unit of variable input after the optimal capacity of the fixed input has been exceeded.
Law of Diminishing Returns (transcript) (1/29/2012)
The Law of Diminishing Returns says that when some inputs are fixed in capacity in the short run, increasing the variable input working with the fixed inputs would first lead to increasing additional output per additional unit of variable input, but eventually decreasing additional output per additional unit of variable input after the optimal capacity of the fixed input has been exceeded.
Tragedy of the Commons (11/2/2011)
Unlimited entry could easily lead to over-exploitation of commons resources.