STAGE OF NEGATIVE RETURNS

 Stage of Negative Returns:

  Total product declines, MP is negative, average product is diminishing. This stage is called the stage of negative returns since the marginal product of the variable factor is negative during this stage.

Explanation the law of negative returns: 

As the amount of the variable factor continues to be increased to a constant quantity of the other, a stage is reached when the total product declines and marginal product becomes negative. This is due to the fact that the quantity of the variable factor becomes too excessive relative to the fixed factor so that they get in each other’s ways with the result that the total output falls instead of rising. In such a situation, a reduction in the units of the variable factor will increase the total output.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

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GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Inte