Question

Q.2 Give the reasons for diminishing returns to a factors.​

Answer 1

Answer:

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Explanation:

There are many causes of diminishing marginal returns. Examples include: Fixed Costs. Lower levels of Productivity.

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Fixed Costs. ...

Lower levels of Productivity. ...

Limited Demand. ...

Negative Impact on Working Envrionment

Answer 2

Diminishing returns to a factor is can be caused due to multiple reasons such as limited demand, increasing fixed cost, bad productivity, etc.

Explanation:

1. Diminishing returns to a factor can be described as a situation when there is a reduced level of output even when the input remains the same.
2. Diminishing returns to a factor are caused due to multiple reasons such as low level of productivity, limited demand, increasing fixed costs, the negative impact of the employees, etc.
3. When there is a stagnation in the process of production, the resources cannot be utilized to their complete potential, the returns to all the resources fall down.