Question

2. Which is not a correct assumption for the
law of returns to scale?
​

Answer 1

ᎪΝՏᏔᎬᎡ:-

➡️Tʜᴇ ʟᴀᴡ ᴏғ ᴠᴀʀɪᴀʙʟᴇ ᴘʀᴏᴘᴏʀᴛɪᴏɴs ᴏɴʟʏ ᴀᴘᴘʟɪᴇs ᴏɴʟʏ ᴡʜᴇɴ ᴛʜᴇ ᴘʀᴏᴘᴏʀᴛɪᴏɴ ᴏғ ғᴀᴄᴛᴏʀ ɪɴᴘᴜᴛs ᴄᴀɴ ʙᴇ ᴄʜᴀɴɢᴇᴅ.

➡️Tʜɪs ɪɴ ᴛᴜʀɴ ɪs ᴏɴʟʏ ᴘᴏssɪʙʟᴇ ᴡʜᴇɴ ᴀʟʟ ғᴀᴄᴛᴏʀs ᴇxᴄᴇᴘᴛ ᴛʜᴇ ᴏɴᴇ ʙᴇɪɴɢ ɪɴᴠᴇsᴛɪɢᴀᴛᴇᴅ ʀᴇᴍᴀɪɴ ғɪxᴇᴅ.

➡️Iᴛ ᴀʟsᴏ ᴀssᴜᴍᴇs ᴛʜᴀᴛ ᴇᴠᴇʀʏ ᴍᴀʀɢɪɴᴀʟ ᴜɴɪᴛ ɪs ᴛʜᴇ sᴀᴍᴇ, ᴀɴᴅ ᴛʜᴇ sᴛᴀᴛᴇ ᴏғ ᴛᴇᴄʜɴᴏʟᴏɢʏ ɪs ғɪxᴇᴅ.