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प्रश्न
Give the meaning of returns to a factor.
What do you mean by returns to a factor?
दीर्घउत्तर
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उत्तर
- Returns to a factor refers to the change in output when the quantity of one input (factor of production) is increased, while all other inputs are kept constant. It is a short-run concept, as in the short run, only one factor (usually labour) can be varied.
- It is also known as the Law of Variable Proportions or the Law of Diminishing Returns, and it explains how output responds as more and more units of the variable factor are added to fixed factors.
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