National Income and Related Aggregates-Types of Goods (CBSE Class-12 Economics): Questions 10 - 10 of 10
Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 523 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.
Rs. 900.00 or
Question number: 10
» National Income and Related Aggregates » Types of Goods
Describe in Detail
Explain, with the help of numerical examples, the effect on total output of a good when all the inputs used in production of that good are increase simultaneously and in the same proportion.
The behavior of Total Product (TP) is technically Returns to Scale. There are three possibilities:
(1) TP rises in greater proportion than the rise in inputs it is known as Increasing Returns to Scale. For example: Suppose there are only two inputs labor (L) and Capital (K). Suppose 1K +… (110 more words) …