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Diminishing returns to a factor arises because of ______. - Economics

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Question

Diminishing returns to a factor arises because of ______.

Options

  • imperfect substitution between factors

  • disturbing the optimum proportion of factor combinations 

  • both imperfect substitution between factors and disturbing the optimum proportion of factor combinations 

  • none of these

MCQ
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Solution

Diminishing returns to a factor arises because of both imperfect substitution between factors and disturbing the optimum proportion of factor combinations.

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Chapter 7: Laws of Returns - Returns to a Factor and Returns to Scale - TEST YOURSELF QUESTIONS [Page 130]

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Frank Economics [English] Class 12 ISC
Chapter 7 Laws of Returns - Returns to a Factor and Returns to Scale
TEST YOURSELF QUESTIONS | Q 7. | Page 130
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