To which of the following factors of production does the law of diminishing returns relate?
Question 1 Report
To which of the following factors of production does the law of diminishing returns relate?
Answer Details
The law of diminishing returns relates to the factor of production known as "variable factors". This law states that as more and more of a variable factor (such as labor or raw materials) is added to a fixed amount of other factors of production (such as land or capital), the marginal product of the variable factor will eventually decrease, leading to a decrease in overall productivity. In simpler terms, adding more and more workers to a factory or farm may initially lead to increased output, but eventually, the additional workers may start getting in each other's way or using up resources faster than they can be replenished, resulting in a decrease in output per worker.
Download The App On Google Playstore
Everything you need to excel in your exams
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning