State giving reasons, whether the following statements are true or false:
(i) When there are diminishing returns to a factor, Total Product always decreases?
(ii) Total Product will increase only when Marginal Product increases.
(i) False, in a situation of diminishing returns to a factor, Marginal Product tends to fall, which implies that Total Product should be increasing though at a diminishing rate.
(ii) False, Total Product will also increase when Marginal Product decreases. In that case, Total Product increases at a diminishing rate.