Explain the law of diminishing returns.Why this law generally applies to agriculture
Answers
Answered by
1
Diminishing returns, also called law of diminishing returns or principle ofdiminishing marginal productivity, economic law stating that if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually be reached at which additions of the input yield.
Answered by
2
Heya user ✨✨
Law diminishing marginal utility state that has more and more unit of a commodity are consumed marginal utility derived from every additional unit must decline .It happen in respect of all good and services .
Assumption ⏬⏬
➡️ Only standard unit of the commodity are consumed .
➡️ Consumption of the commodity is continuous .Not that one unit of the commodities consumed now and the other tomorrow .
Law diminishing marginal utility state that has more and more unit of a commodity are consumed marginal utility derived from every additional unit must decline .It happen in respect of all good and services .
Assumption ⏬⏬
➡️ Only standard unit of the commodity are consumed .
➡️ Consumption of the commodity is continuous .Not that one unit of the commodities consumed now and the other tomorrow .
Similar questions