State giving reasons, whether the following statements are true or false:
(i) When there are diminishing returns to a factor, Total Product first increases and then starts falling?
(ii) When Marginal Product falls, Average Product will also fall?
(i) False, this is because of decline in Marginal Product.
Falling Marginal Product implies that Total Product continues to increase at a diminishing rate.
(ii) False, Average Product can rise even when Marginal Product falls.