Question

5. Stage II of Law of Variable Proportions is called
(1)
(i)
Diminishing returns
Decreasing returns
Falling returns
Negative returns
(iv)​

Answer 1

Answer:

Diminishing returns

Explanation:

The TPP continues to increase but at a diminishing rate. However, the increase is positive. Further, the MPP decreases with an increase in the number of units of the variable factor. Hence, it is called the stage of diminishing returns.

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Answer 2

Explanation:

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