Explain the reasons for : (i)Increasing returns to a factor(ii) Diminishing returns to a factor.

Explain the reasons for : (i)Increasing returns to a factor(ii) Dimini

1.	Explain the reasons for : (i)Increasing returns to a factor(ii) Diminishing returns to a factor.
Answer» Solution :(i)(i) BETTER utilisation of FIXED FACTOR. (II) Effecient utilisation of variable factor. (iii) Better co-ordination between FACTORS. (ii) (i) Over-utilisation of the fixed factor. (ii) Imperfect Substitution of factors. (iii) Poor Coordination.