WAEC - Economics (2022 - No. 9)
Which of the following factors is not a cause of diminishing returns?
Increase in variable inputs
constant technology
Land fragmentation
Technological innovations
Explanation
Lae of diminishing returns also known as known as law of variable proportion. It is applied to the short run analysis of production . However, the causes of diminishing returns are: fixed costs, limited demand, No change in technology,scarce factors etc.