State the cause by which marginal product of a variable factor change from increasing return to diminishing return.

State the cause by which marginal product of a variable factor change

1.	State the cause by which marginal product of a variable factor change from increasing return to diminishing return.
Answer» The supply will decrease. When supply decreases, it creates an excess demand at the old equilibrium price. This results in a competition among buyers, which raises the price of products or services. Increase in price results in a rise in supply and fall in demand.