The point at which the total product curve begins to flatten out indicates:

CA Foundation · Business Economics · MTP · January 2025
The point at which the total product curve begins to flatten out indicates:
(A) A. The onset of diminishing marginal returns
(B) B. Maximum efficiency in production
(C) C. A decrease in fixed costs
(D) D. The end of increasing returns to scale

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. The onset of diminishing marginal returns

Topics: Determination of National Income

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