Question

explain the effects of increases in all inputs in the same proportion on the products.​

Answer 1

Answer:

All factors are only allowed to be varied in the long run, thus the firm can only adjust its scale of production (change its production function) in the long run. The law of returns to scale operates only when all the factors are variable, i.e., in the long run

Answer 2

Answer:

All factors are only allowed to be varied in the long run, thus the firm can only adjust its scale of production (change its production function) in the long run. The law of returns to scale operates only when all the factors are variable, i.e., in the long run.