Give Meaning of 'Returns to a Factor. - Economics

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Give the meaning of returns to a factor.

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Solution

If an additional unit of variable input is utilised in the production process, then there will be a change in the level of output. This is called returns to a factor. This is also known as the law of variable proportions or law of diminishing returns.

Concept: Returns to a Factor
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2013-2014 (March) Delhi Set 1
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