Economy, asked by Gamakshi1337, 1 year ago

Why is constant return an ideal situation?

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Answered by saurabh8744
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LAW OF RETURN

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LAW OF CONSTANT RETURNS

There can be a situation whee neither the law of diminishing returns nor the law of increasing returns  operates. but there is instead constant return..An industry is subject to the law of constant returns when. whatever the output or scale of production. the cost per unit remains unaltered, or increased investment of labour and capital results in a proportionate increase in the output. Marshall pointed out that the part played by nature corresponded to diminishing returns and the part  played by man to increasing returns. That is why inagriculture. where nature is said to be supreme. there is diminishing return

Answered by itzriyaz
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Explanation:

Instead, we shall have constant returns. In every industry, we find the influence of both man and nature. Nature controls the raw materials, while man directs the manufacturing side. ... Whenever the scale of production is increased, the cost of raw materials and other factors may go up on account of increased demand

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