Question

explain the stages of law of returns to a factor in detail​

Answer 1

Answer:

Returns to a factor and returns to scale are two important laws of production. ... Returns to a factor relate to the short period production function when one factor is varied keeping the other factor fixed in order to have more output, the marginal returns of the Variable factor diminish.

There are three possible types of returns to scale: increasing returns to scale, constant returns to scale, and diminishing (or decreasing) returns to scale. If output increases by the same proportional change as all inputs change then there are constant returns to scale (CRS).