January 8, 2015 in Other with: fish, life, pescatarian. I was originally intending to begin this post with the phrase, âI have a confession to makeâ¦â. But then I realized that the use of that phrase makes it sound like I have done something bad or wrong.
The marginal rate of return is a term that is used to identify the rate of return that is generated if a single unit is added to the current process, in comparison with choosing to maintain the status quo or taking some other type of action that exerts some effect on the returns realized.
View Full Document. Diminishing marginal returns occur when the marginal gain in output diminishes as each additional unit of input is added. The term constant returns to scale describes a situation where expanding all inputs does not change the average cost of production . If a firm is experiencing decreasing returns to scale , then as the quantity of output rises, the average cost of production rises.