Question
Factors of production are imperfect substitutes of each other.
Answer: Option A
:
A
True.Factors of production are imperfect substitutes of each other. More and more of labour cannot be continuously used in place of capital. Accordingly, diminishing returns are bound to set in if only the variable factor is increased to increase output.
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:
A
True.Factors of production are imperfect substitutes of each other. More and more of labour cannot be continuously used in place of capital. Accordingly, diminishing returns are bound to set in if only the variable factor is increased to increase output.
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