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4 October, 10:01

Based on the last quarterly report, Jason realizes that it is now taking more resources to produce each of the laptop computers his company makes. What aspect of comparative advantage is Jason noticing?

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  1. 4 October, 13:39
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    Answer: diminishing returns

    Explanation: diminishing returns is the decrease in the marginal output of a production process as the amount of a single factor of production is increasing, while the amounts of all other factors of production stay fixed. Diminishing return refers to a situation at which the level of profits gained or benefits gained is less than the amount of money or energy invested in a business.

    However, in the scenario above, based on the last quarter report, Jason realizes that resources that it takes to produce each of the laptop computers his company produce is higher than the amount of money or energy invested in the production process.
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