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Question
What Is Negative Return to a Factor?
What Is Negative Return to a Factor?
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Solution
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
Stay connected with BYJU’S for more such questions and answers on various commerce topics.
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
Stay connected with BYJU’S for more such questions and answers on various commerce topics.
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