reasons for increasing return to factor
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There are three important reasons for the operation of increasing returns to a factor:
- 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. ...
- Increased Efficiency of Variable Factor: ...
- Indivisibility of Fixed Factor:
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Answered by
2
There are three important reasons for the operation of increasing returns to a factor:
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. ...
Increased Efficiency of Variable Factor: ...
Indivisibility of Fixed Factor:
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