in law of diminishing marginal productivity-
expalin the line-"a point is reached beyond which the additional returns to the variable factor starts falling"
Law of Diminishing Marginal Productivity - According to the law of diminishing marginal productivity, as more and more units of variable factors are employed, a point is reached beyond which the additional returns to the variable factor starts falling.
The given statement implies that when we keep increasing the variable factor of production, then after a certain level of employment of variable factor, each unit of variable factor starts giving lesser and lesser returns as compared to the previous units.
The given statement implies that when we keep increasing the variable factor of production, then after a certain level of employment of variable factor, each unit of variable factor starts giving lesser and lesser returns as compared to the previous units.
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