NABTEB Economics 2022 Objective — Question 17

Question 17 of 50 from the National Business and Technical Examinations Board (NABTEB) Economics 2022 Objective paper, with the correct answer and a full explanation.

Which of the following factors is not a cause of diminishing returns?

A. increase in variable inputs
B. land fragmentation
C. constant technology
D. technological innovationsCorrect

Explanation

The law of diminishing returns (law of variable proportion) operates in the short run under constant technology; technological innovation is not a cause of diminishing returns.

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