Diminishing returns to a factor always lead to a fall in total product.

True

No worries! We‘ve got your back. Try BYJU‘S free classes today!

False

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is B False
The given statement is False. This is because in a situation of diminishing returns to a factor marginal product tends to fall. Falling marginal product implies that total product should be increasing, though at a diminishing rate. It simply implies diminishing slope of TP (total product) curve, NOT diminishing TP.

Suggest Corrections

Similar questions

Q. Diminishing returns to a factor occur simply because supply of all factors cannot be increased.

Giving reasons, state whether the following statements are true or false:
(i) Average product will increase only when marginal product increases.
(ii) Under diminishing returns to a factor, total product continues to increase until marginal product reaches zero.

What do you understand by returns to a factor? State the reasons for diminishing returns to a factor.

Q. Diminishing returns to a variable factor occur because the producer fails to buy the variable factor in the required quantity.

Q. The hypothesis of eventually diminishing returns applies to production function ___________.

Join BYJU'S Learning Program