Ayushi Asked a Question
August 10, 2020 5:56 pmpts 30 pts
42. In the production function is linear homogenous of the first degree, wlth the increase in output, the marginal physical productivity of variable factor will: (1) Rise (2) Fall1 (3 (3) Remain constant (4) Rise at slower rate
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  • Nidhi taparia Best Answer
    The correct answer is (2) Fall. When the production function is linearly homogeneous or returns to scale are constant, the law of diminishing returns to factor holds true.
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