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
the marginal revenue will diminish
the average revenue will diminish
the marginal product will diminish
the marginal product will increase
Answer is Wrong!
Answer is Right!
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.