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Production and cost — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost1 Mark
Question
Giving reasons, state whether the following statement are true or false:
When there are diminishing returns to a factor, total product always decreases.
✓

Answer

False.
Explanation:
When there are diminishing returns to a factor, total product always does not decrease. Total product will decrease only when marginal product is negative. Total product will not decrease if Marginal Product is positive even if it is declining.

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