The diagram below represents a production function. At which of the points does diminishing returns set in__________
R
S
T
V
Explanation
Video Explanation
No video available
Post your Contribution
Discussions (4)
Breakdown of the Points:
Point R: The curve is still steep and concave upward. Production is increasing rapidly as you add more input (like more workers to a single machine).
Point S (The Inflection Point): This is where the "speed" of growth starts to slow down. While total production is still going up, each additional unit of input adds less than the previous unit did. This is precisely where diminishing returns set in.
Point T: This is the maximum point of the curve. At this point, the marginal return is zero. Adding any more input after this will actually cause total production to drop.
Point V: This represents negative returns, where the curve is sloping downward.
Key Takeaway
"Diminishing returns" doesn't mean your total output is falling; it means your rate of growth is slowing down. Think of it like a car that is still moving forward but has started to let off the gas.
The answer i gave to this question was 'C' but the application marked it as incorrect
it diminish at T because thats where it start falling look at the graph giving and look at my explanation......no much talk.....plz drop answers to this question
