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What is the law of diminishing returns? - Economics

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प्रश्न

What is the law of diminishing returns?

What do you mean by decreasing returns to a factor?

लघु उत्तर
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उत्तर

Diminishing returns to a factor means that each extra unit of a variable factor produces less and less output. In other words, the marginal product decreases as more of the factor is used. In this case, output usually rises but at a slower pace as more of the variable factor is added to the fixed factor.

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पाठ 7: Laws of Returns - Returns to a Factor and Returns to Scale - TEST YOURSELF QUESTIONS [पृष्ठ १३१]

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फ्रँक Economics [English] Class 12 ISC
पाठ 7 Laws of Returns - Returns to a Factor and Returns to Scale
TEST YOURSELF QUESTIONS | Q 25. | पृष्ठ १३१
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