Unformatted text preview: Another Factor that contributes to the shape of the PPC is the law of diminishing returns o Deals with the relationship between input/output o More specifically, it states that output will increase when the input increases, but only to a certain extent (ex. overcrowding of cooks in a kitchen can cause a decrease in output)...
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This note was uploaded on 02/05/2011 for the course ECON 011 taught by Professor Yezer during the Fall '07 term at GWU.
- Fall '07