Law of increasing return operates due to ........

Economics- Phase (I & II) Demand and Supply , Market Structures

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Law of increasing return operates due to:

Division of Labour and specialization

Indivisibility of Fixed Factors

Both a and b

Misuse of machinery

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Explanation:

The law of increasing returns is also called the law of diminishing costs. The law of increasing return states that: "When more and more units of a variable factor is employed, while other factor remain fixed, there is an increase of production at a higher rate.