The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-When more and more doses of fertilizers are added to a fixed plot of agricultural land, the crop yield initially declines but eventually rises.

Question

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3
 
-When more and more doses of fertilizers are added to a fixed plot of agricultural land, the crop yield initially declines but eventually rises.

Quizplus · Accepted Answer

Initially, the crop yield increases with the addition of fertilizers due to enhanced nutrient availability, but beyond a certain point, excessive fertilizers can lead to a decline in yield due to nutrient imbalance, toxicity, or environmental harm.

The Figure Given Below Shows Three Short Run Average Total