Question

Explain the reasons behind increasing returns to factor

Answer 1

Explanation:

Increasing returns to Scale:

This situation occurs if a percentage increases in all inputs results in a greater percentage change in output. For e.g. a 10 % increase in all inputs causes a 20% increase in output. As changes in the output is more than the change in input

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Answer 2

Answer:

Increasing returns to Scale:

This situation occurs if a percentageincreases in all inputs results in a greater percentage change in output.For e.g. a 10 % increase in all inputscauses a 20% increase in output. ... As changes in the output is more than the change in input.