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When there are diminishing return to …

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When there are diminishing return to a factor ,total product first increases then start falling. Is it true or false ? Give reason.

Posted by Ekta Yadav 7 years, 2 months ago

CBSE > Class 12 > Economics

2 answers

Deepak Kumar 7 years, 2 months ago

1.increasing retuns .....Mp inreases , Tp increses at an increasing rate. 2.Diminishing returns .....MP decreases , TP increases at an decreasing rate. 3.MP = 0 , TP is highest ans constant. 4.Negative returns.....MP becomes negative , TP starts falling .

Dheeraj Ankush Rai 7 years, 2 months ago

See first TP increases at increasing rate then this stage is known as increasing and and here marginal product increases second TP increases at decreasing rate and marginal product decreases and this stage is known as diminishing return at last TP declines and MP becomes negative this stage is known as negative Returns

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