Law of Diminishing Returns is not relevant when ________________.

All labourers are equally efficient

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The time period is short

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All factory inputs are increased by the same proportion

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Technology remains constant

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Solution

The correct option is C All factory inputs are increased by the same proportion
Law of Diminishing Returns is not relevant when-all factory inputs are increased by the same proportions.Law of variable proportions is also known as the law of diminishing returns. This law shows the production function with one input factor variable while keeping the other input factors constant.

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Similar questions

Constant returns to scale (CRS) is a property of production function that holds when a proportional increase in all inputs results in an increase in output by the same proportion.

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(iv) Laws of returns to scale

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