Question

The law that determines best use of limited resources among alternative use is known as

A Law of equi marginal return Correct Answer Incorrect Answer
B Law of supply Correct Answer Incorrect Answer
C Law of demand Correct Answer Incorrect Answer
D Law of variable proportion Correct Answer Incorrect Answer

Solution

The law of equimarginal return states that  profit from a limited amount of variable input is maximized  when that input is used in such as way that marginal return from that input is equal in all the enterprises.

Practice Next
×
×