Question

The basic reason of operating the law of Diminishing Returns is
(A) Scarcity of factors
(B) Imperfect substitution between factors
ICH Both (A) and (B)
(D) None of these​

Answer 1

Answer:

a) scarcity of factors but I'm not sure about ans as well.

Answer 2

Explanation:

Neoclassical economists assume that each "unit" of labor is identical. Diminishing returns are due to the disruption of the entire productive process as additional units of labor are added to a fixed amount of capital. The law of diminishing returns remains an important consideration in farming.

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