Question

difference between return to a factor and return to scale​

Answer 1

Answer:

hlo✔

Returns to a variable factor examine the effects on output when only one factor is increased while assuming other factors to be constant. Returns to scale examine the effects on output when all the factors are increased simultaneously in the same proportion...

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Answer 2

Answer:

The difference between returns to a variable factor and returns to scale are summed up as below: (i) In the former (returns to a variable factor) only one factor is changed keeping other factors fixed whereas in the latter (returns to scale), all the factors are changed in the same proportion.