Question

what is meant by diminishing returns factors? explain its causes​

Answer 1

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Diminishing returns to a factor refers to a phase when total product increase at a decreasing rate and marginal product falls, but remains positive, with increase in variable factor.

Answer 2

Answer:

Diminishing returns to a factor is the phase of production wherein as more and more units of a variable factor are employed the MP decreases with each additional unit of employment. (i) Over-utilisation of the fixed factor. (ii) Imperfect Substitution of factors. (iii) Poor Coordination.