Question

5. What is meant by diminishing returns to a factor? Explain its causes.​

Answer 1

Answer:

The law of diminishing marginal returns is a theory in economics that predicts that after some optimal level of capacity is reached, adding an additional factor of production will actually result in smaller increases in output. ... The law of diminishing returns is related to the concept of diminishing marginal utility.

Explanation:

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Answer 2

Answer:

The law of diminishing marginal returns is a theory in economics that predicts that after some optimal level of capacity is reached, adding an additional factor of production will actually result in smaller increases in output. ... The law of diminishing returns is related to the concept of diminishing marginal utility