Question

Giving reasons state the following statements whether true or false:-
(i) when there are diminishing returns to a factor total product always decreases
(ii) total product will increase only when marginal product increases
(iii) increase in total product always indicate that there are increasing reaturns to a factor
(iv) when there are diminishing returns to a factor, both always falls.

Answer 1

Answer:

i. False. As during diminishing returns to a factor, the TP increases but at a decreasing rate and attains its maximum.

ii. False. ​Total product will also increase when marginal product decreases.

iii. False. It is not necessary that increase in total product always indicate that there are increasing returns to a factor as in the stage of dimnishing returns to factor total product also increases but at dimnishing rate.

iv. False. ​When there are diminishing returns to a factor, total product increases and marginal product falls.

Mark as brainleast answer

Answer 2

Answer:

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