Question

Given below are two statements: Statement I: Law of diminishing return also regarded as a fundamental law in agriculture and economics. Statement II: This law helps in determination of optimum input to use and optimum output to produce. In the light of the above Statements, choose the correct answer from the options given below:

Q: Answer-Given below are two statements: Statement I: Law of diminishing return also regarded as a fundamenta...

The Law of Diminishing Returns states that as additional units of a variable input are applied to a fixed quantity of other inputs, the marginal product of the variable input will eventually decline. It is indeed regarded as a fundamental law in agriculture and economics. Statement II is also true, as the law helps in determining the optimal input and output levels for efficient production.