[amp_mcq option1=”George Stigler” option2=”Samuelson” option3=”Joan Robinson” option4=”Alfred Marshall” correct=”option4″]<\/p>\n
The correct answer is: D. Alfred Marshall<\/strong><\/p>\n The law of diminishing returns states that in all productive processes, adding more of one input, while holding all others constant, will at some point yield lower incremental per-unit returns.<\/p>\n The law of increasing returns states that in some productive processes, adding more of one input, while holding all others constant, will at some point yield higher incremental per-unit returns.<\/p>\n Alfred Marshall was an English economist who is considered one of the most influential economists of the 19th century. He is best known for his work on microeconomics, including his development of the theory of comparative advantage. Marshall also made significant contributions to the field of macroeconomics, including his work on the theory of money and interest.<\/p>\n In his book “Principles of Economics,” Marshall argued that the law of diminishing returns is a matter of logical necessity, while the law of increasing returns is a matter of empirical fact. Marshall reasoned that the law of diminishing returns must hold true in all productive processes, because it is simply a matter of mathematics. As more and more of one input is added to a production process, the marginal product of that input must eventually decline. This is because the additional output that can be produced by adding one more unit of the input will eventually become smaller and smaller.<\/p>\n However, Marshall argued that the law of increasing returns may hold true in some productive processes. This is because there are some productive processes in which the additional output that can be produced by adding one more unit of an input may actually increase. This can happen if the additional input allows for the use of more efficient production methods.<\/p>\n In conclusion, the statement “The law of diminishing return is merely a matter of logical necessity but the law of increasing return is a matter of empirical fact” comes from Alfred Marshall. Marshall argued that the law of diminishing returns is a matter of logical necessity, while the law of increasing returns is a matter of empirical fact.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”George Stigler” option2=”Samuelson” option3=”Joan Robinson” option4=”Alfred Marshall” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-59049","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n