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

Economics
WAEC 2022

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
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Correct Answer: Option D
Explanation

Lae 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.


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