In the law of diminishing returns which factor causes productivity to drop after a certain point?

Answer 1

1.limited capacity of the organisation and supervision leads to diminish

2.increase of variable factor while other factors are remained constant may cause decrease.

3.constant state of technology-yhis cause diminish to occur if technology changes the law is delayed.

4.fixed productive capacity of the firm -if the firm is overstrained as more and more variable factors are added this cause the diminish returns.

these are my answers my name is elias mndewa from Tanzania my email address is www.bsmndewa@arscp.org

Answer 2

Law of Diminishing Returns The Law of diminishing returns is a key one in economics. It isused to explain many of the ways the economy works and changes. It is a relatively simple idea;spending and investing more and more in a product where one of the factors of productionremains the same means the enterprise will eventually run out of steam. The returns will begin todiminish in the long run. If more fertilizer and better machinery are used on an acre of farmland,the yield will increase for a while but then begin to slow and become flat. A farmer can only getso much out of the land, and the more the farmer works, the harder it gets. The economic reasonfor diminishing returns of capital is as follows: When the capital stock is low, there are manyworkers for each machine, and the benefits of increasing capital further are great; but when thecapital stock is high, workers already have plenty of capital to work with, and little benefit is to be gained from expanding capital further.

Answer 3

The law of diminishing returns sets in when profit and loss begin to become closer. The return becomes smaller and smaller.

Answer 4

adding more variable inputs