Q no 33 pls..all three
Dear Student
(i) Total product always increase whether its increasing returns or diminishing returns to a factor -TRUE
total product ic increasing in increasing returns stage as well as diminishing returns to a factor but in diminishing return total product increase at the diminishing rate.
(ii) When there are diminishing returns to factor total product always decreases - FALSE
in diminishing return to factors TP is increasing at a diminishing rate because MP starts declining in this stage.
(iii) Total product will increase only when marginal product increases. - FALSE
The above statement is false as total product is increases when marginal product increases and TP also increases when marginal product decreases in diminishing returns to factor stage.
Regards
(i) Total product always increase whether its increasing returns or diminishing returns to a factor -TRUE
total product ic increasing in increasing returns stage as well as diminishing returns to a factor but in diminishing return total product increase at the diminishing rate.
(ii) When there are diminishing returns to factor total product always decreases - FALSE
in diminishing return to factors TP is increasing at a diminishing rate because MP starts declining in this stage.
(iii) Total product will increase only when marginal product increases. - FALSE
The above statement is false as total product is increases when marginal product increases and TP also increases when marginal product decreases in diminishing returns to factor stage.
Regards