If units of a variable factor are increasingly added to a fixed factor and the...
ECONOMICS
JAMB 1991
If units of a variable factor are increasingly added to a fixed factor and the marginal physical product keeps increasing, production is said to be taking place under conditions of?
- A. increasing returns to the variable factor
- B. increasing returns to scale
- C. constant returns to variable factor
- D. external economies of scale
Correct Answer: A. increasing returns to the variable factor
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