Economy, asked by rishiparth2004, 2 months ago

State true or false
Diminishing returns to a factor always lead to fall in total product

Answers

Answered by kmahima922
1

Answer:

The given statement is False. This is because in a situation of diminishing returns to a factor marginal product tends to fall. Falling marginal product implies that total product should be increasing, though at a diminishing rate. It simply implies diminishing slope of TP (total product) curve, NOT diminishing TP.

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