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

True

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False

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Solution

The correct option is B False
Diminishing returns to a variable factor occur because the producer fails to maintain the ideal ratio between the factors, because of the constraint of the fixed factor.

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Similar questions

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

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

The correct option is B FalseDiminishing returns to a variable factor occur because the producer fails to maintain the ideal ratio between the factors, because of the constraint of the fixed factor.

The correct option is B False
Diminishing returns to a variable factor occur because the producer fails to maintain the ideal ratio between the factors, because of the constraint of the fixed factor.