Question

The law of diminishing returns applies to-
A) Agriculture
B) Manufacturing
C) Mining and fishing
D) All of these

Answer 1

Law of diminishing applies when one factor of the production is increased and the other is still constant. Hence, the output will be eventually diminished. In one point, employment for production in any field can relatively increase output. The diminishing applies to the long run as factors are variable in the short run. Fields where factors are applied can be- agriculture, manufacturing and other similar fields.

Complete answer-
A) Agriculture- law of diminishing applies to agriculture as sometimes agricultural lands show productivity, else due to drought or lack of minerals they can undergo soil erosion.
Option A is not the correct answer.
B) Manufacturing- manufacturing things at factories are a common factor also they are applicable to diminishing law as lack of manpower or source of equipment can bring the productivity down or shut for some period.
Option B is not the correct answer.
C) Mining and fishing- mining can be of different minerals and fish agriculture or fish culture are same. Both can put productivity at halt.
Option C is not the correct answer.
D) All of these
This is absolutely applicable because not only a single option is correct but all the above options are true.

Therefore, Option D is the correct answer.

Note:
As we know, diminishing is applicable to all fields including agriculture, mining, fishing and manufacturing. An example to describe the law would be- considered a farm with one acre land when the farmer increases its productivity the total output also increases from $100$ to $250$. Therefore, the marginal output also gained from one unit to another unit.