๐Ÿ“ข Too many exams? Donโ€™t know which one suits you best? Book Your Free Expert ๐Ÿ‘‰ call Now!

    Question

    Which law states that the profit from a limited amount

    of variable input is maximized when that input is used in such a way that marginal return from that input is equal in all the enterprises?
    A Law of Diminishing marginal returns Correct Answer Incorrect Answer
    B Law of Variable proportions Correct Answer Incorrect Answer
    C Law of Equimarginal returns Correct Answer Incorrect Answer
    D Principle of Combining enterprises Correct Answer Incorrect Answer
    E Law of substitution Correct Answer Incorrect Answer

    Solution

    Law of Equimarginal returns states that the profit from a limited amount of variable input is maximized when that input is used in such a way that marginal return from that input is equal in all the enterprises. This law is concerned with the allocation of the limited amount of resource among different enterprises.

    Practice Next
    More Agriculture Section Tests Questions

    Relevant for Exams:

    ask-question