Question
Output of food grain in India at one stage was less than its domestic demand. Now it is not. Does it mean that the law of diminishing returns has failed in Indian agriculture?
Answer: Option A
:
A
No. Rise in output of food grain in India is owing to the use of new technology (related to HYV seeds). When there is an improvement in technology, the occurence of the law of diminishing returns is deferred for some time. It does not mean that the law of diminishing returns has failed. It only postponement of law. The law is bound to set-in again once the effect of new technology is exhausted.
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:
A
No. Rise in output of food grain in India is owing to the use of new technology (related to HYV seeds). When there is an improvement in technology, the occurence of the law of diminishing returns is deferred for some time. It does not mean that the law of diminishing returns has failed. It only postponement of law. The law is bound to set-in again once the effect of new technology is exhausted.
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