Question

State and Explain the Law of Increasing Return

Answer 1

Answer:

An increasing returns to scale occurs when the output increases by a larger proportion than the increase in inputs during the production process. For example, if input is increased by 3 times, but output increases by 3.75 times, then the firm or economy has experienced an increasing returns to scale.......

Answer 2

Answer:

▶The law of increasing return is also called the law of diminishing costs. The law of increasing return States that : "When more and more units of a variable factor is employed , while other factor remain fixed , there is an increase of production at a higher rate. ✔

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