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December 20, 2014

December 20, 2014

Posted by **Anonymous** on Monday, July 12, 2010 at 11:54am.

- economics -
**Craig**, Monday, July 12, 2010 at 12:49pmThe smaller of the two factories will begin to see diminishing returns first. That is because they will have exhausted the capacity of the fixed factor of production(i.e. the factory) sooner. In other words, production will reach its maximum level because the factory only has the capacity for X output so returns will dwindle with each additional input of labor.

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