How does the law of diminishing returns affect productivity?

The law of diminishing returns establishes a negative relationship between input resources and productivity. As more variable inputs are added to a fixed resource in production, the productivity of these variable inputs decreases What is the opportunity cost of increasing the production of televisions from point C to point E?

What is the law of increasing marginal returns?

Ans : Law of Increasing Marginal Returns to a factor can be stated as, “while other inputs arekept constant in the short run, when a firm employs additional units of an input, the TPincreases at rising rate i.e. the marginal returns increases.”

Why does the law of diminishing returns occur?

This is an explanation of the law of diminishing returns and it occurs because not all factor inputs are equally suited to producing items Combinations of the output of consumer and capital goods lying inside the PPF happen when there are unemployed resources or when resources are used inefficiently