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In case of diminishing returns :
Total product increases at diminishing rate
Total product increases at increasing rate
Marginal product diminishes
Both(a) and (c)
- Option 1: Total product increases at a diminishing rate.
- This is correct. When diminishing returns occur, each additional unit of input results in a smaller increase in total output.
- Option 2: Total product increases at an increasing rate.
- This is incorrect. Increasing returns, not diminishing, would lead to total product increasing at an increasing rate.
- Option 3: Marginal product diminishes.
- This is correct. Diminishing returns imply that the marginal product of an input decreases as more of it is added, while other inputs remain constant.
- Option 4: Both (a) and (c).
- This is correct because both option 1 and option 3 accurately describe the characteristics of diminishing returns.
Option 4 is correct.
By: santosh ProfileResourcesReport error
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