Difference between decreasing returns to a factor and decreasing returns to scale

ADVERTISEMENTS:

Under decreasing returns to a factor, more units of variable factor are employed for increas­ing output as a result of which total product increases at decreasing rate or marginal product declines.

On the contrary under decreasing returns to scale, the proportionate increase in the output is less than the proportionate increase in the factor inputs. For example, output may be less than double as a result of doubling all the factor inputs.

, ,

Web Analytics
Kata Mutiara Kata Kata Mutiara Kata Kata Lucu Kata Mutiara Makanan Sehat Resep Masakan Kata Motivasi obat perangsang wanita