Hello aspirant,
These are the following reasons of increasing returns to a factor-
Hope, this answer helps you.
Question : If a change in all input leads to a proportionate change in output, it is a case of:
Option 1: constant returns to the scale
Option 2: diminishing returns to the scale
Option 3: increasing returns to the scale
Option 4: variable returns to the scale
Question : When all inputs are doubled and a result, output also doubles, then we have:
Option 1: constant returns to scale
Option 2: decreasing returns to scale
Option 3: increasing returns to scale
Option 4: none of the options
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