In the context of the law of production, which period is related to 'Return to Scale' ?
Returns to scale relate to the long period, when all factors of production can be varied. In the short period, at least one factor is fixed, so output changes are studied…
Choose your answer
In the context of the law of production, which period is related to 'Return to Scale' ?
Answer and explanation
Correct answer B
Returns to scale relate to the long period, when all factors of production can be varied. In the short period, at least one factor is fixed, so output changes are studied through variable proportions.
Practice for these exams
-
Madhya Pradesh SET (MP SET)