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Production and cost — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsProduction and cost1 Mark
Question
Giving reasons, state whether the following statement are true or false:
When there are diminishing returns to a factor, marginal product and total product both always fall or diminish.
✓

Answer

False.

Explanation:

When there are diminishing returns to factor, MP always fall but TP may not fall, TP continues to increase until MP becomes negative.

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