RETURNS TO SCALE

Economics Assignment Help Online

Distinction between Laws of Returns and Returns to Scale The laws of returns discussed above are often confused with ‘returns to scale’. The two may be clearly distinguished. By “returns to scale” is meant the behaviour of production or returns when all the productive factors are increased or decreased simultaneously  in the same ratio. In other words, in returnsto scale. […]

LAW OF CONSTANT RETURNS

Economics Assignment Help Online

LAW OF CONSTANT RETURNS There can be a situation whee neither the law of diminishing returns nor the law of increasing returns  operates. but there is instead constant return..An industry is subject to the law of constant returns when. whatever the output or scale of production. the cost per unit remains unaltered, or increased investment of labour and capital […]

LAW OF INCREASING RETURNS

Economics Assignment Help Online

LAW OF INCREASING RETURNS Another aspect of the universal law of variable proportions is the law of increasing returns. An industry is subject to the law of increasing returns if extra investment in the industry is following by more than proportionate returns, i.e, if the marginal product increases.  In terms of cost, the law of increasing returns means the […]

Modern Economic Theory

Economics Assignment Help Online

Modern Economic Theory of both developed technology may be able to keep the law of diminishing returns in abeyance. We see from  the Indian experience that improved technology has has ushered in what is known as the ‘green revolution’ and, in a short span of time, we have not only been able to ban hunger and starvation from the […]

Importance of the Law of Diminishing Returns

Economics Assignment Help Online

Importance of the Law of Diminishing Returns We have already quoted Cairnes when he says that in the absence of the law of diminishing returns, “The science of political economy would be as completely revolutionized as if human nature itself were altered.” Such is the great importance of the law of diminishing returns. The law of diminishing returns has a very wide, […]

Law of Diminishing returns ill a General Form

Economics Assignment Help Online

Law of Diminishing returns ill a General Form The discussion of the (a of diminishing returns in relation to land, since the times of the English Classical economists. has 0 ureJ its real significance. There is nothing peculiar • )lit agriculture for the law to be exclusively as ociated with it. /\s a matter of fact. in agriculture, the la has […]

Modern Economic Theory

Economics Assignment Help Online

Modern Economic Theory We have seen that the law of diminishing returns has a wide application. But it specially applies to agriculture and other extractive industries. One thing that is common to all these industries is the supremacy of nature. It is, therefore, often remarked that the part that nature plays ill production corresponds to diminishing returns and the part which […]

Limitations of the Law of Diminishing Returns

Economics Assignment Help Online

Limitations of the Law of Diminishing Returns situations. There are several exceptions to law as it applies in agriculture: (i) Improved methods of cultivation. Man’s in genuity is ever striving to counteract the operation  this law by improving the technique of cultivation.Scientific rotation of crops, improved seeds, modem implements, artificial manures and better irrigation facilities, etc., are bound t9 give […]

ASSUMPTIONS OF THE LAW OF VARIABLE PROPORTIONS

Economics Assignment Help Online

ASSUMPTIONS OF THE  LAW OF VARIABLE PROPORTIONS The law of variable propotions, as stated above, 2. Stigler, GJ. -Theory a/price, 1953, 3. Samuelson, P.A..-Economlcs, 8th Ed. p.2S. 4. Benham, F.. Economics, 1960, P.1I0. 5. Boulding, K.E. -Principles of Economics holds true under certain conditions. The following are  its main assumptions:(a) It is assumed that the state […]

Economic Implications of the Law of Variable Proportions

Economics Assignment Help Online

Economic Implications of the Law of Variable Proportions The law of variable propoi tions (of which the law of diminishing returns is one aspect) shows the efficiency  of factor combination. Incidentally, the threeMages of the law of diminishing returns shown above throw light on how efficiently have the [actors (land But when it enters the second st age, it […]