What is meant by returns to a factor? State the law of diminishing ret

1.	What is meant by returns to a factor? State the law of diminishing returns to a factor.
Answer» The law of diminishing returns operates in the short run when we can’t change all the factors of production. Further, it studies the change in output by varying the quantity of one input. Technically, the law states that as we increase the quantity of one input which is combined with other fixed inputs, the marginal physical productivity of the variable input must eventually decline. Law of diminishing returns to a factor It refers to a situation in which total output increases at a diminishing rate when more and more variable factor is combined with the fixed factor of production. In this situation, Marginal Product of the variable factor must be diminishing.

What is meant by returns to a factor? State the law of diminishing returns to a factor.

Answer»

The law of diminishing returns operates in the short run when we can’t change all the factors of production. Further, it studies the change in output by varying the quantity of one input.

Technically, the law states that as we increase the quantity of one input which is combined with other fixed inputs, the marginal physical productivity of the variable input must eventually decline.

Law of diminishing returns to a factor It refers to a situation in which total output increases at a diminishing rate when more and more variable factor is combined with the fixed factor of production. In this situation, Marginal Product of the variable factor must be diminishing.

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