Question

Explain returns to scale using isoquants

Answer 1

The laws of returns to scale can also be explained in terms of the isoquant approach. The laws of returns to scale refer to the effects of a change in the scale of factors (inputs) upon output in the long-run when the combinations of factors are changed in some proportion.

If by increasing two factors, say labour and capital, in the same proportion, output increases in exactly the same proportion, there are constant returns to scale.

Answer 2

Answer:

if by increasing two factors say labour and capital

in the same porportion out put increase in exactly the same porportion there are constant returns to scale.