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What is meant by return to a factor? |
| Answer» <article data-post-id="11043" data-topic-id="8766" data-user-id="2" id="post_2">Returns to a factor It refers to the behaviour of output when only one variable factor of production is increased in short-run and fixed factors remain constant.Law of diminishing returns to a factor It refers to a situation in which total output increases at a diminishing rate when more and more variable factor is combined with the fixed factor of production. In this situation, Marginal Product of the variable factor must be diminishing.<section><nav><button aria-label="like this post" title="like this post"></button><button aria-label="share a link to this post" data-post-number="2" data-share-url="/t/what-is-meant-by-returns-to-a-factor/8766/2" title="share a link to this post"></button></nav></section><section>\xa0</section></article> | |