Question

Land is subject to ________ returns. (increasing / constant / diminishing / negative), Fill in the blank with appropriate alternative given in the bracket.

Answer 1

Increasing

Land is subject to increasing returns .

Answer 2

Answer:

diminishing

Explanation:

Land is subject to diminishing returns.

Land is considered a primary production factor as it is used in all manufacturing types. It promotes manufacturing and in the process does not alter itself. It therefore functions as a basis in the manufacturing process.

However, since land is a production factor, the total output increases when more and more units of labor and capital are applied to soil, but only at a declining pace.