Question

The law of diminishing marginal returns:
a.
states that each and every increase in the amount of the variable factor employed in the production process will yield diminishing marginal returns
b.
is a mathematical theorem that can be logically proved or disproved
c.
is the rate at which one input may be substituted for another input in the production process
d.
none of the above

Answer 1

Answer:

Option a is correct.

Explanation:

After reaching the equilibrium point

The additional variable factor will increase the production in decreasing rate.

Also it create a situation of disguised unemployment.