Question

. According to the Law of Diminishing
Returns, in a production function when
more and more units of the variable
factor are used, holding the quantities
of a fixed factor constant, a point is
reached beyond which
(a) the marginal revenue will diminish
(b) the average revenue will diminish
(c) the marginal product will diminish
(d) the marginal product will increase​

Answer 1

Answer:

Option C is correct (marginal products will diminish)

Answer 2

Answer:

The correct answer is option (C) the marginal product will diminish.

Explanation:

• The law of diminishing marginal yields says that adding an extra production factor will result in lower output rises at some stage.
• For instance, a factory employs employees to produce its products, and the business works at an ideal rate at some stage.
• The law of diminishing yields says that, by adding more units of variable input to set quantities of soil and capital, the change in total output will first increase and then decrease.
• Diminishing labor yields occur when the marginal labor product begins to drop.