What is meant by return to …
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Gaurav Seth 4 years, 11 months ago
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.
<section> <nav>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.
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