Economics · Theory of Production
A farmer notices that when he increases fertilizer use beyond a certain point, the additional output declines. Which economic law is being observed here?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Law of variable proportions
- 2Law of diminishing marginal returns✓
- 3Law of constant returns
- 4Law of increasing returns
Correct answer
Law of diminishing marginal returns
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