Can anyone explain the law of increasing returns?
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Law of Increasing Returns watch
- Thread Starter
- 14-03-2018 13:22
- 18-03-2018 09:24
I assume you mean increasing return to scale and it means if you increase input by 2 times and output will more than double.
This can also be referred to as Economies of Scale when average cost declines as producing more and can be acquired by the spreading of fixed cost over expansion of output (when the production is capital intensive giving rise to indivisibility)