difference between return to variable factors and returns to scale
Dear student,
Returns to factor relates to short period of time where the production can be increased by changing only the variable factors of production.
On the other hand, Returns to scale refers to long period of time where the production can be increased by changing both the fixed as well as the variable factors of production.
Returns to factor relates to short period of time where the production can be increased by changing only the variable factors of production.
On the other hand, Returns to scale refers to long period of time where the production can be increased by changing both the fixed as well as the variable factors of production.