Question

12.
Explain the phase of decreasing returns to a factor in terms of marginal
product, using a schedule. Give ONE reason for its operation.
(4)​

Answer 1

Answer:

The Law of Diminishing Returns

You might have heard of the proverb: ‘Too many cooks spoil the broth’. The law of diminishing returns discusses this in the context of production. What happens when we keep on adding inputs and exceed the quantity required for optimum production? Let’s find out.