Answer :

Negative returns to a factor states that if more and more units of a variable factor are employed with the fixed factor, after a certain level of output, the marginal product of the variable factor will be negative and total product will fall.

The two reasons behind negative returns to a factor are:


a. An increase in the variable factor alongwith fixed factor, after a certain level of output will lead to negative marginal product and the total product wil fall.


b. The use of both the factors beyond a certain optimum level will disturb the work relationship among them.


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