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प्रश्न
What is the shape of marginal product curve during the operation of law of diminishing returns?
लघु उत्तर
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उत्तर
The Marginal Product (MP) curve slopes downward when the Law of Diminishing Returns is in effect. After a while, the additional output (also known as the marginal product) from each additional unit of a variable input (such as labour) added to a fixed input (such as capital) begins to decline. The MP curve slopes downward as a result of this declining marginal product. Therefore, during the time of diminishing returns, the MP curve has a downward slope.
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