differentiate between returns to scale and constant return to scale
My loose definition of constant returns to scale:Constant returns to scale occur when a given increase in output is brought about by the same proportional increase in returns.
THE LAW OF RETURNS TO mean that law in which we study about the different period of the production in which increasing , decreasing , and constant returns to scale is studied
huge profit then large competitions ect.....
AFC will decrease
differentiate between returns to scale and constant return to scale
Economies of scale (costs decrease), diseconomies of scale (costs increase), constant returns to scale (costs stay the same)
My loose definition of constant returns to scale:Constant returns to scale occur when a given increase in output is brought about by the same proportional increase in returns.
THE LAW OF RETURNS TO mean that law in which we study about the different period of the production in which increasing , decreasing , and constant returns to scale is studied
example of large scale industry
I am not aware of anyone using that method on industrial scale
There are three types of industry. They are cottage and small-scale industry medium and large-scale industry tourist industry
it provies raw materials for other large scale industries
A cottage industry is even smaller than a small scale industry. For example weaving at home and selling is a cottage industry while a small scale industry is lesser in technology and capital than a large scale industry but is bigger than a cottage industry.
In large scale industry the goodes will get in cheap rate
You can start a large scale industry if you have adequate financial outlay.
huge profit then large competitions ect.....