Question

What does increasing returns to a factor means?

Answer 1

Answer:

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. ... The output increases at a rate higher than the rate of increase in the employment of variable factor

Answer 2

Answer:

Explanation:

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. ... The output increases at a rate higher than the rate of increase in the employment of variable factor.