--%>
Assignment Help - homework help

Illustrates the Law of Returns to scale

Illustrates the Law of Returns to scale?

E

Expert

Verified

In the long run all the factor of production is variable and an increase in output is possible by raising all the inputs. The Law of Returns to scale illustrates the technological relationship in between changing scale of output and input. The law of returns of scale describe how a simultaneous and proportionate raise in all the inputs influences the total output. The rise in output may be proportionate, less than proportionate or more than proportionate. If the rise in output is proportionate to the raise in input, this is constant Returns to scale. If this is less then proportionate this is diminishing returns to scale. The rising return to the scale comes first, and after that constant and at last diminishing returns to scale happens.

   Related Questions in Managerial Economics

  • Q : What are the various fields of Economics

    What are the various fields of Economics? Explain.

    		•
  • Q : Purely competitive labor market is

    When this purely competitive labor market is firstly in equilibrium at D0L, S0L, a move to equilibrium at D1L, S0L would be inconsistent along with increases in: (w) the price of output. (x) labor productivi

    		•
  • Q : Determine perfectly competitive firm

    When total variable cost exceeds total revenue whatever output levels but a perfectly competitive firm: w) must produce in the short run. x) is making short-run profits. y) must shut down in the short run. z) has shel

    		•
  • Q : Profit Maximization in Labor Market and

    As a firm is a pure competitor in both the labor market and during the sale of its product, this will hire labor where: (w) profit is maximized. (x) marginal revenue product = marginal resource cost. (y) wage = value of the marginal product. (z) All o

    		•
  • Q : Illustrate signalling by example If

    If interviewing for a job like a bill collector for a loan shark, Bob mentions his degree into martial arts by the Hard Knox Reformatory, his summer internship along with BreakUrLegs, Inc., as well as his family links. Bob’s casual discussion of such credentials

    		•
  • Q : Describe the term trend projection

    Describe the term trend projection.

    		•
  • Q : Equilibrium of the consumers of the two

    identify two goods consumed by the majority of the neighborhood communities. Qn. establish the equilibrium of the consumers of the two goods

    		•
  • Q : Illustrates the relatively elastic

    Illustrates the relatively elastic demand?

    		•
  • Q : Features of Marginal costing Write down

    Write down the features of Marginal costing?

    		•
  • Q : Tutorial 7. The San Diego Zoo is

    7. The San Diego Zoo is contemplating a stuffed panda bear advertising promotion. Annualized sales data from local shops marketing the "Can't Bear it When You're Away" bear indicate that: Q = 50,000 - 1,000P where Q is Panda bear sales and P is price. A. How many pandas could the zoo sell at $30

    		•