Which of the following is not a reason for operation of increasing returns to a factor?

CA Foundation · Business Economics · MTP · September 2024
Which of the following is not a reason for operation of increasing returns to a factor?
(A) A. Better utilisation of fixed factor
(B) B. Limitation of fixed factor
(C) C. Increase in efficiency of variable factor
(D) D. Indivisibility of fixed factor

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Limitation of fixed factor

Topics: Theory of Production and Cost

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