Help please How is the law of diminishing returns reflected
Solution
(a) Law of diminishing marginal returns states that marginal product of variable input decreases in short run as we uses more of this input in production keeping all other inputs constant.We know the total product curve shape.After stage one,Total product increases but at decreasing rate.Marginal product is change in total product due to change in input.Marginal product of input falls at input quantity rises.
(b) Stage one of production is stage when total product rises at incresing rate and Marginal product also rises.
Stage two is characterised by law of diminshing returns.Total product rises at decreasing rate and therefore Marginal product decreases thereafter.
In stage three, total product decreases, and law of diminishing returns causes marginal product to become negative.

