Question 57
Basic Agricultural EconomicsThe law of diminishing returns helps in
- A.determining the proportion of production factors to combine
- B.determining the qualities of fixed resources to use in production
- C.indicating economic wages to pay farm workers
- D.indicating the quantity of fixed factors to employ
Show the answer and explanation
Answer: A (determining the proportion of production factors to combine)
Explanation
It shows the point beyond which adding more of one input gives less extra output, so it guides the best combination of inputs.