Economics · Business Economics
Suppose a short-run production function is given as Q = -L3 + 5L2 + 10L. Which law of production is primarily revealed by this production function as labor increases?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Law of Returns to Scale
- 2Law of Constant Returns
- 3Law of Increasing Returns
- 4Law of Diminishing Returns✓
Correct answer
Law of Diminishing Returns
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