Question

Diminishing returns to a factor occurs because of *
1 point
a. frequent power cuts
b. management problem
c.non-availability of raw materials
d. poor co-ordination between the factors

Answer 1

Answer:

hdisoeijehehshhdßDiminishing returns to a factor occurs because of *

1 point

a. frequent power cuts

b. management problem

c.non-availability of raw materials

d. poor co-ordination between the factors

Answer 2

Option C is the correct answer.

• Diminishing returns to a factor occur because some components are stabilized and output is improved by borrowing more and more components of the unstable factor. It irritates the ideal factor percentage and decreases the recoveries set in.
• The diminishing refunds to a component characterize a specific stage under the statute of unstable percentage. Under this stage, the recoveries to an unstable component input or the marginal commodity are decreasing in behaviour, thereby providing the term 'diminishing returns to a factor.
• Complete utilisation of the limiting component, Better coordination between components and division of labour and an improvement in the efficiency of variable components also determined the Diminishing returns to a factor.

Hence, option C non-availability of raw materials is the correct answer.

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