Q. Which of the following statements describes the presence of diminishing returns. Holding at least one factor constant ….... (Solved)
1. The marginal product of a factor is positive and rising.
2. The marginal product of a factor is positive but falling.
3. The marginal product of a factor is falling and negative.
4. The marginal product of a factor is constant.
- b. The marginal product of a factor is positive but falling.