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MICROECONOMICS CH : 7 PRODUCTION FUNTION AND RETURNS TO A FACTOR — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMICROECONOMICS CH : 7 PRODUCTION FUNTION AND RETURNS TO A FACTOR1 Mark
Question
Should both TP and MP be declining in a situation of diminishing returns?
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Answer

False. In a situation of diminishing returns, only MP should be declining. And, when MP is decreasing, TP should be increasing, though at a diminishing rate.

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