Question

What is meant by diminishing returns to a factor explain it's cause

Answer 1

Answer:

diminishing returns is the decrease in the marginal output of a production process as a amount of a single factor of production is incrementally increased while the amount of all other factor of production stay constant.

i hope it is useful for you

thanks

Answer 2

Causes of diminishing returns to factors:

Imperfect factor substitute: factors of production are imperfect substitute of each other. more mor le and more labour can not be use in place of additional capital.

Poor coordination between factors continues increase in applications of variable factors along with fixed factor beyond a point closes the limit of ideal factors ratio.