Explain the changes that take place in total product and marginal product under increasing returns to a factor ?

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Solution

Total product of input refers to total volume of goods and service by a film with the given inputs during specified period of time.
Marginal product $= \frac{c h a n g e i n o u t p u t}{c h a n g e i n i n p u t}$
So, as we increase the quantity of only one input, keeping others fixed, the total product increases at an increasing rate in the beginning, then decreases at a decreasing rate and after a level the output ultimately falls. Marginal product rises when total product increases at a increasing rate, but when total product decreases at a diminishing rate marginal product falls and remain positive.

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