RETURNS TO VARIABLE FACTOR VS RETURNS TO SCALE | MICROECONOMICS | LEARN OIKONOMIA
THis video discusses RETURNS TO VARIABLE FACTOR VS RETURNS TO SCALE
Returns to a factor studies the behavior of output when more and more units of the variable factor is combined with the fixed factor. Here, scale of production remains constant but factor ratio changes. Whereas the returns to scale studies the behavior of output when the scale of output changes.
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