{"id":90333,"date":"2025-06-01T10:26:31","date_gmt":"2025-06-01T10:26:31","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=90333"},"modified":"2025-06-01T10:26:31","modified_gmt":"2025-06-01T10:26:31","slug":"according-to-the-law-of-diminishing-returns-in-a-production-function","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/according-to-the-law-of-diminishing-returns-in-a-production-function\/","title":{"rendered":"According to the Law of Diminishing Returns, in a production function"},"content":{"rendered":"

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<\/p>\n

[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″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CAPF – 2019<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nThe Law of Diminishing Returns (also known as the Law of Variable Proportions) states that when one input into the production process is increased while all other inputs are held constant, the marginal product of the variable input will eventually decrease. This point is reached after the initial stages where marginal product might increase due to specialization.
\n<\/section>\n
\n– The law applies when at least one factor of production is fixed and at least one is variable.
\n– It focuses on the physical output, specifically the marginal product of the variable factor.
\n– Marginal product is the extra output produced by adding one more unit of the variable input.
\n<\/section>\n
\nThe law of diminishing returns describes a short-run phenomenon where some factors are fixed. It relates to the productivity of the variable input, not directly to revenue concepts like marginal revenue or average revenue, although diminishing marginal product can eventually lead to diminishing returns in terms of revenue depending on the market structure and prices.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

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 … <\/p>\n

Detailed SolutionAccording to the Law of Diminishing Returns, in a production function<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1119,1120,1261],"class_list":["post-90333","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1119","tag-economic-development","tag-nature-of-indian-economy","no-featured-image-padding"],"yoast_head":"\nAccording to the Law of Diminishing Returns, in a production function<\/title>\n<meta name=\"description\" content=\"The Law of Diminishing Returns (also known as the Law of Variable Proportions) states that when one input into the production process is increased while all other inputs are held constant, the marginal product of the variable input will eventually decrease. This point is reached after the initial stages where marginal product might increase due to specialization. - The law applies when at least one factor of production is fixed and at least one is variable. - 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.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/according-to-the-law-of-diminishing-returns-in-a-production-function\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"According to the Law of Diminishing Returns, in a production function\" \/>\n<meta property=\"og:description\" content=\"The Law of Diminishing Returns (also known as the Law of Variable Proportions) states that when one input into the production process is increased while all other inputs are held constant, the marginal product of the variable input will eventually decrease. This point is reached after the initial stages where marginal product might increase due to specialization. - The law applies when at least one factor of production is fixed and at least one is variable. - 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.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/according-to-the-law-of-diminishing-returns-in-a-production-function\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:26:31+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"According to the Law of Diminishing Returns, in a production function","description":"The Law of Diminishing Returns (also known as the Law of Variable Proportions) states that when one input into the production process is increased while all other inputs are held constant, the marginal product of the variable input will eventually decrease. 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