Law of diminishing marginal rate of substitution example
21 Jul 2017 The Marginal Cost (MC) of a sandwich will be the cost of the worker divided In this example, after three workers, diminishing returns sets in. 30 Sep 2018 It is good to note that the law of diminishing marginal returns is only applicable on a marginal returns, then this leads to an increase in the average cost of production. If there is a decrease in one factor of production and no suitable substitute can be found then the law will Example One: The Farmer.