Giving reasons , state whether the following statements are true or false : (i)When there are diminishing returns to a factor, total product always decreases (ii)Total product will increase only when marginal product increases (iii)Increase in total product always indicates that there are increasing returns to a factor (iv)When there are diminishing returns to a factor, marginal and total product both always fall (vi)AP rises only when MP rises

Giving reasons , state whether the following statements are true or fa

1.	Giving reasons , state whether the following statements are true or false : (i)When there are diminishing returns to a factor, total product always decreases (ii)Total product will increase only when marginal product increases (iii)Increase in total product always indicates that there are increasing returns to a factor (iv)When there are diminishing returns to a factor, marginal and total product both always fall (vi)AP rises only when MP rises
Answer» Answer :(i) False, as TP increases at a decreasing RATE when there are DIMINISHING returns to a factor (ii)False, TP ALSO increases when MP falls positively (III)False, TP also increases when there are diminishing returns to a factor. (iv)False, only MP falls but not TP under diminishing returns to a factor (v)False, AP rises as long as MP > AP. Here MP could be rising or falling