Returns to a factor refers to the resultant increase in the total product when only one factor is increased, keeping all the other factors constant.

True

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False

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Solution

The correct option is A
True

The statement is true. It measures the returns in terms of increased output when one additional unit of a factor is used, keeping all other factors constant.

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Similar questions

Q. Increasing returns to a factor are indicated whenever there is increase in total product.

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.

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

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

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(v > v_{0})

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Returns to a factor refers to the resultant increase in the total product when only one factor is increased, keeping all the other factors constant.

The correct option is A True The statement is true. It measures the returns in terms of increased output when one additional unit of a factor is used, keeping all other factors constant.

The correct option is A
True

The statement is true. It measures the returns in terms of increased output when one additional unit of a factor is used, keeping all other factors constant.