The following points highlight the two main factors giving rise to increasing return to scale. The factors are: 1. Indivisibilities of the factors of production 2. Specialisation of factor of production. Factor # 1. Indivisibilities of the factors of production: There are some factors of production which are purchase in some fixed quantity and cannot be divided into small pieces; [...]
Let us make an in-depth study of the Law of Increasing Returns:- 1. Meaning of the Law of Increasing Returns 2. Where the Law of Increasing Returns Operate and Why? 3. Factors Responsible 4. Limitations. Meaning and Definition of Law of Increasing Returns: The Law of Increasing Returns may be defined as such — "As the proportion of one factor [...]
Law of Increasing Returns: Definitions, Assumptions, Explanation, Causes and Similarities and Dissimilarities! The Law of Increasing Returns was propounded in the seventeenth century by Antonia Seera. This law is nothing but an improvement over the law of diminishing returns. According to this law, "Production of a commodity increases in a larger proportion as compared to the increase in the units [...]