Which one of the following is a correct assumption of Law of Diminishing Returns to a variable Input ?
In the theory of production, the Law of Diminishing Returns to a variable input assumes that technology remains constant, only one input is varied while all other factors…
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Which one of the following is a correct assumption of Law of Diminishing Returns to a variable Input ?
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Correct answer D
In the theory of production, the Law of Diminishing Returns to a variable input assumes that technology remains constant, only one input is varied while all other factors are held fixed, all units of the variable factor are homogeneous, and input prices remain given (uninfluenced by the individual firm's usage).
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UGC NET Commerce