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
[amp_mcq option1=”the marginal revenue will diminish” option2=”the average revenue will diminish” option3=”the marginal product will diminish” option4=”the marginal product will increase” correct=”option3″]
This question was previously asked in
UPSC CAPF – 2019
– 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.