The concave-downward function model is based on:
A)the microeconomics law of diminishing returns.
B)the economic law of supply and demand.
C)price elasticity of demand quotients.
D)the change in contribution margins as item price is changed.
E)perceptual mapping results.

Question

Quizplus · Accepted Answer

The concave-downward function model is based on the microeconomics law of diminishing returns, which assumes that as production increases with a fixed input (such as labor or capital), the marginal product of the input will eventually decrease. This leads to a concave-downward shape in the production function graph, which is used to analyze the relationship between inputs and outputs in the manufacturing process.

The Concave-Downward Function Model Is Based On