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State the behaviour of MPP, under Returns to a factor. |
Answer» <html><body><p><br/></p>Answer : In <a href="https://interviewquestions.tuteehub.com/tag/short-642706" style="font-weight:bold;" target="_blank" title="Click to know more about SHORT">SHORT</a> run, when one factor input is variable and other factors are fixed `q=f(x_1barx_2)`marginal <a href="https://interviewquestions.tuteehub.com/tag/physical-600035" style="font-weight:bold;" target="_blank" title="Click to know more about PHYSICAL">PHYSICAL</a> product changes in the following ways : <br/>(i) <a href="https://interviewquestions.tuteehub.com/tag/mpp-549071" style="font-weight:bold;" target="_blank" title="Click to know more about MPP">MPP</a> <a href="https://interviewquestions.tuteehub.com/tag/initially-516121" style="font-weight:bold;" target="_blank" title="Click to know more about INITIALLY">INITIALLY</a> increases and becomes maximum (Phase I) <br/>(ii) MPP then decreases positively and becomes zero (Phase II) <br/> (<a href="https://interviewquestions.tuteehub.com/tag/iii-497983" style="font-weight:bold;" target="_blank" title="Click to know more about III">III</a>) MPP becomes negative (Phase III).</body></html> | |