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t. e. In economics, the law of increasing costs is a principle that states that to produce an increasing amount of a good a supplier must give up greater and greater amounts of another good. The best way to look at this is to review an example of an economy that only produces two things - cars and oranges. If all the resources of the economy ...
Thus, diminishing marginal returns imply increasing marginal costs and increasing average costs. Cost is measured in terms of opportunity cost. In this case the law also applies to societies – the opportunity cost of producing a single unit of a good generally increases as a society attempts to produce more of that good.
The total cost curve, if non-linear, can represent increasing and diminishing marginal returns.. The short-run total cost (SRTC) and long-run total cost (LRTC) curves are increasing in the quantity of output produced because producing more output requires more labor usage in both the short and long runs, and because in the long run producing more output involves using more of the physical ...
v. t. e. In futures studies and the history of technology, accelerating change is the observed exponential nature of the rate of technological change in recent history, which may suggest faster and more profound change in the future and may or may not be accompanied by equally profound social and cultural change.
Wagner's law, also known as the law of increasing [ a] state activity, [ 2] is the observation that public expenditure increases as national income rises. [ 3] It is named after the German economist Adolph Wagner (1835–1917), who first observed the effect in his own country and then for other countries. [ 4]
A demand curve is a graph depicting the inverse demand function, [ 1] a relationship between the price of a certain commodity (the y -axis) and the quantity of that commodity that is demanded at that price (the x -axis). Demand curves can be used either for the price-quantity relationship for an individual consumer (an individual demand curve ...
To the right is the long tail, and to the left are the few that dominate (also known as the 80–20 rule ). In statistics, a power law is a functional relationship between two quantities, where a relative change in one quantity results in a relative change in the other quantity proportional to a power of the change, independent of the initial ...
Returns to scale. In economics, the concept of returns to scale arises in the context of a firm's production function. It explains the long-run linkage of increase in output (production) relative to associated increases in the inputs ( factors of production ). In the long run, all factors of production are variable and subject to change in ...