State giving reasons, whether the following statements are true or false:
(i) Increase in Total Product always indicates that there are increasing returns to a factor.
(ii) When there are diminishing returns to a factor, Marginal and Total Product both fall?
(i) False, it is not necessary because in the stage of diminishing returns to a factor, Total Product also increases but at a diminishing rate.
(ii) False, in the case of diminishing returns to a factor, only Marginal Product tends to fall. Total Product tends to increase at a diminishing rate.