what are the causes of negative return to a factor?
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Negative returns to a factor states that when more and more units of variable factor are added along with the fixed factor in production, then after a certain level of output, the total product will reduce and the value of marginal product will become negative.
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negative returns to factor are due to the application of the law of diminishing returns when the ratio between the fixed and variable factor becomes defective. Was this answer helpful? Its under utilization of fixed factors and they become imperfect substitutes for each other
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