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?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.
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