When the quantity of variable factors is changed under the law of Increasing Return, in what proportion production changes in __________.

increasing proportion

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constant proportion

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decreasing production

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variable proportions

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Solution

The correct option is C increasing proportion
When the firm experiences economies of scale, it benefits from increasing returns to scale this occurs when the firm's output increases more than proportionately to its input, thus the average cost falls.

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Similar questions

Q. If all inputs are increased in the same proportion, then it is a case of ___________.
(i) Short run production function
(ii) Long run production function
(iii) Laws of variable proportions
(iv) Laws of returns to scale

Constant returns to scale (CRS) is a property of production function that holds when a proportional increase in all inputs results in an increase in output by the same proportion.

Q. Explain the changes that take place in total product and marginal product under increasing returns to a factor ?

Q. "Law of diminishing returns" or "Law of variable proportion" operate in ___________.

Q. Law of variable proportions operates only if factor ratio happens to change.

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When the quantity of variable factors is changed under the law of Increasing Return, in what proportion production changes in __________.

The correct option is C increasing proportionWhen the firm experiences economies of scale, it benefits from increasing returns to scale this occurs when the firm's output increases more than proportionately to its input, thus the average cost falls.

The correct option is C increasing proportion
When the firm experiences economies of scale, it benefits from increasing returns to scale this occurs when the firm's output increases more than proportionately to its input, thus the average cost falls.