https://padlet.com/rachna_shukla15/oiaag8ttfg61 Made with a taste for adventure en-us 2018-09-29 19:10:01 UTC 2026-01-17 22:17:57 UTC hello@padlet.com rachna_shukla15 https://padlet.com/rachna_shukla15/oiaag8ttfg61/wish/287246775 2018-09-29 19:12:08 UTC https://padlet.com/rachna_shukla15/oiaag8ttfg61/wish/287246775 https://padlet.com/rachna_shukla15/oiaag8ttfg61/wish/287506923 returns to a variable factor occur in the short run, when a variable input such as labour is added in greater quantity to a fixed input such as capital. 
returns to scale occur in the long run, when all factors of production are variable, and the scale of production can be increased by changing the proportions of the inputs used. when a firm changes its inputs, they can experience constant returns to scale, where inputs and output increase in a proportional amount, or increasing returns, where output increases by more than input, and decreasing returns, where input increases by more than output. ]]> 2018-10-01 09:55:13 UTC https://padlet.com/rachna_shukla15/oiaag8ttfg61/wish/287506923 https://padlet.com/rachna_shukla15/oiaag8ttfg61/wish/287507255 The two concepts are differentiated by the time-scale that they are applied by, wherein the "Returns to a variable factor" is applied in an SR context, whilst the latter is used in an LR context. These time scales implies how capital is fixed in the former concept.]]> 2018-10-01 09:56:27 UTC https://padlet.com/rachna_shukla15/oiaag8ttfg61/wish/287507255 dsmun19hrc https://padlet.com/rachna_shukla15/oiaag8ttfg61/wish/287629003 Returns to a variable factor is a short run concept where in only one factor of production (labor) changes because we assume that capital is fixed in the short run. Thus, changes in output are attributed to the changes in only one of the factor inputs. Whereas, returns to scale is a long run concept which shows that both factors of production are variable, where returns can be increasing, decreasing or constant. As oppose to returns to a variable factor where returns are diminishing.]]> 2018-10-01 14:24:54 UTC https://padlet.com/rachna_shukla15/oiaag8ttfg61/wish/287629003 https://padlet.com/rachna_shukla15/oiaag8ttfg61/wish/287665981 Both returns to variable factor and returns to scale experience constant, diminishing and increasing returns, however returns to variable factor is considered for the short term where one factor is assumed to be fixed while the other is assumed to be variable, while returns to scale assumes that both factors are variable since it is in the long run]]> 2018-10-01 15:11:54 UTC https://padlet.com/rachna_shukla15/oiaag8ttfg61/wish/287665981