Which of the following factors is not a cause of diminishing returns?

A. Increase in variable inputs
B. constant technology
C. Land fragmentation
D. Technological innovations

Correct Answer:

Option D – Technological innovations

Explanation

Law 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.