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Question 42 2 pts Due to the Law of Diminishing Returns (LDR), as more output is produced, the marginal product of the variab
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Answer #1

Sol 42 :

Option (b) is correct (Decreases)

because of the following reason :

  • Law of diminishing marginal product states that when more and more units of variable factor is employed , marginal product of the labour decreases.
  • So, when out increases in case of law of diminishing returns means more employment of labour . Which will decreases the MP of labour.
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