Question

product both increase at a diminishing rate.
Reason(R): Marginal product is addition to total product when one more unit of
variable factor is employed.
a. Both A and R are true and R is the correct explanation of A
b. Both A and R are true and R is not the correct explanation of A
C. A is true, but R is false
d. A is false, but Ris True
5. At a given price, when demand for commodity is more than the supply of the
amodity, it is called excess demand. Here given price is:
a. Less than equilibrium price​

Answer 1

Answer:

The law of diminishing marginal returns is a theory in economics that predicts that after some optimal level of capacity is reached, adding an additional factor of production will actually result in smaller increases in output.

For example, a factory employs workers to manufacture its products, and, at some point, the company operates at an optimal level. With all other production factors constant, adding additional workers beyond this optimal level will result in less efficient operations.