Increasing return to a factor
Describe the likely behaviour of total product beneath the phase of increasing return to a factor.
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Increasing return to a factor is the first level of Law of return to a factor. Whenever more and more units of a variable factor is joined with fixed factor up to a certain phase, the total physical product increases along with increasing rate.
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Marginal cost: It is the change in sum cost by generating one more or less unit of output.
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‘Are rail companies being sympathetic to students in providing cheaper fares with young person’s rail-cards?’
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