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Production and cost — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost1 Mark
Question
Giving reasons, state whether the following statement are true or false:
Increase in total product always indicates that there are increasing returns to a factor.
✓

Answer

False.
Explanation:
Increase in total product indicates increasing returns to factor till the point marginal product is rising. If TP is rising with falling MP then it is not increasing returns to factor.

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