- The law applies when at least one factor of production is fixed and at least one is variable. - It focuses on the physical output, specifically the marginal product of the variable factor. - Marginal product is the extra output produced by adding one more unit of the variable input.
According to the Law of Diminishing Returns, in a production function when more and more units of the variable factor are used, holding the quantities of a fixed factor constant, a point is reached beyond which
Asked in UPSC CAPF 2019 · Topic: Nature of Indian Economy (Developing Economy Characteristics)
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Answer: C. the marginal product will diminish
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