The law of diminishing marginal returns states that if increasing units of variable factors of production are combined with a given quantity of another fixed factor, returns are on the increased up to a point after which the marginal returns falls.
| LAND | UNITS OF LABOUR | TOTAL OUTPUT | MARGINAL OUTPUT | AVERAGE OUTPUT |
| 5 Hectares | 1 | 10 | 10 | 10 |
| 5 Hectares | 2 | 22 | 12 | 11 |
| 5 Hectares | 3 | 39 | 17 | 13 |
| 5 Hectares | 4 | 52 | 13 | 13 |
| 5 Hectares | 5 | 60 | 8 | 12 |
| 5 Hectares | 6 | 66 | 7 | 11 |
300 Level Estate Management and Valuation Department exam questions and detailed answers. Download the answers…
200 Level Estate Management and Valuation Department exam questions and detailed answers. Download the answers…
200 Level Estate Management and Valuation Department exam questions and detailed answers. Download the answers…
200 Level Estate Management and Valuation Department exam questions and detailed answers. Download the answers…
200 Level Estate Management and Valuation Department exam questions and detailed answers. Download the answers…
200 Level Estate Management and Valuation Department exam questions and detailed answers. Download the answers…