Question

Stage of negative returns sets in when:
MP is diminishing
MP is rising
MP is negative​

Answer 1

Question :-

Stage of negative returns set in?

Answer :-

→ When M.P ( Marginal product) is negative .

This happens because of Law of variable proportion.

What is Law of variable proportion ?

→ Law of variable proportion is a law explaining the trend of marginal product it states that when more and more amount of variable factor is combined with the fixed amount of fixed factor the trend of marginal product will be -

→ Initially rise resulting in increase in total output at a increasing rate .

→ After that marginal product will start declining resulting in increase in total output at diminishing rate.

→ Even a situation will came when the marginal product became zero resulting in no increase in total output.

→ Eventually we will face a situation when the marginal product started becoming negative resulting in decreasing in the total output.