Economy, asked by monster2756, 5 months ago

reasons for increasing return to factor​

Answers

Answered by lilye25822
3

Answer:

There are three important reasons for the operation of increasing returns to a factor:

  1. 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. ...
  2. Increased Efficiency of Variable Factor: ...
  3. Indivisibility of Fixed Factor:

Explanation:

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Answered by abhinav283604
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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