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ch4aika [34]
3 years ago
5

If a 10 percent increase in both capital and labor causes output to increase by less than 10 percent, the production function is

said to exhibit decreasing returns to scale. If it causes output to increase by more than 10 percent, the production function is said to exhibit increasing returns to scale. Why might a production function exhibit decreasing or increasing returns to scale?
Business
1 answer:
olasank [31]3 years ago
3 0

Answer:

Because of economies and diseconomies of scale.

Explanation:

Increasing returns to scale refers to the situation when a proportionate change in input leads to more than proportionate change in output. This may happen because of economies of scale.  

Economies of scale are said to happen when the average cost of production decreases with the increase in the volume of output.  

Decreasing returns to scale refers to the situation when a proportionate change in input leads to less than proportionate change in output. This may happen because of diseconomies of scale.  

Diseconomies of scale occur when a firm experiences an increase in the average total cost as the volume of output increases.

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When components for a dell laptop computer are produced by a u.s. supplier, this is an example of?
IrinaK [193]

When components for a dell laptop computer are produced by a u.s. supplier, this is an example of onshoring.

A supplier is someone or enterprise that provides a product or service to any other entity. The role of a supplier in an enterprise is to offer products from a manufacturer at an awesome rate to a distributor or store for resale.

In an enterprise, a supplier is someone or an entity that provides top-notch offerings and goods from manufacturers at reasonable costs to shops or distributors for sale. They offer deliverables in the form of raw materials, which the producers later system into market-equipped stop products.

Providers are often known as the first hyperlink in a supply chain, present strictly in a B2B relationship. With the aid of comparison, a seller is a business or man or woman who purchases merchandise from a corporation, then sells them to a person else.

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Read 2 more answers
Which player in the economy supplies labor in the factor market?
djyliett [7]

The player in the economy that supplies labor in the factor market is households.

Economists refer to all of the resources that firms utilize to buy, rent, or hire the equipment they use to generate goods or services as the "factor market."

The factors of production—raw materials, land, labor, and capital—are what are required to meet these needs.

The input market is another name for the factor market.

By this definition, all markets fall into one of two categories: those that provide businesses with the resources they require, or those that provide consumers with the goods and services they need to make purchases.

The market for finished goods or services is referred to as an output market, whereas a factor market is referred to as an input market.

This can be seen as a closed-loop flow where households are sellers and businesses are buyers in the factor market and vice versa in the market for goods and services.

Hence, The player in the economy that supplies labor in the factor market is households.

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