Question

why does law of diminishing returns apply to agriculture sector ?

Answer 1

The law of diminishing returns operates in the short run when we can't change all the factors of production. Further, it studies the change in output by varying the quantity of one input. ... This is because the crowding of inputs eventually leads to a negative impact on the output.

Answer 2

Answer:

Application of the Law in Agriculture:

In agriculture, more and more doses of labour and capital can be employed with the fixed factor (land) to produce more. ... Thus as more and more variable factors are employed with the fixed factors, the marginal product falls and hence the law of diminishing returns apply.

Explanation:

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