Question

Explain any three reasons behind increasing returns to factor. Which stage a

rational producer would be operating production?
.
don't answer if y'all dont know else ima get y'all reported :)​

Answer 1

Answer:

There are three important reasons for the operation of increasing returns to a factor:

1. Better Utilization of the Fixed Factor: In the first phase, the supply of the fixed factor (say, land) is too large, whereas variable factors are too few. ...
2. Increased Efficiency of Variable Factor: ...
3. Indivisibility of Fixed Factor