Question

Analyze several magazine or newspaper ads to determine how the ads reflect or use the law of diminishing marginal utility. Describe your findings in specific detail.

Answer 1

Diminishing marginal returns is a short run concept and occurs when increases in output become smaller and smaller as more units of a variable input are combined with some fixed input. Diseconomies of scale is a long run concept and occurs when, as output increases, long-run average cost increases.