Question

What Is Negative Return to a Factor?

Answer 1

Negative returns to a factor states that when more and more units of variable factor are added along with the fixed factor in production, then after a certain level of output, the total product will reduce and the value of marginal product will become negative.

Also read:

• Meaning of Demand and Factors Affecting Demand
• Law of Variable Proportion
• The Law of Diminishing Marginal Product and the Law of Variable Proportions

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