Question

what is meant by returns to a factor ????​

Answer 1

RETURNS TO THE FACTOR REFERS TO WHERE THE VARIABLE INPUTS ARE INCREASED & THE OUTPUT ALSO INCREASES IN THE SAME PROPORTION. THERE ARE THREE STAGES

• INCREASING RETURNS
• CONSTANT RETURNS
• DIMINISHING RETURNS

ANYHOW, THIS LAW DOESNOT HAVE VALIDITY SINCE ALL THE FACTORS CANNOT BE VARIABLE.

Answer 2

returns to a factor refer to the behaviour of output when only the variable factor of production is changed fixed factors remaining constant