CA Foundation Exam > CA Foundation Videos > Business Economics for CA Foundation > Laws of Return to Scale
Laws of Return to Scale Video Lecture | Business Economics for CA Foundation
|
124 videos|191 docs|88 tests
|
FAQs on Laws of Return to Scale Video Lecture - Business Economics for CA Foundation
| 1. What are the laws of return to scale? |  |
Ans. The laws of return to scale refer to the relationship between the increase in inputs and the resulting increase in outputs in the long run. There are three laws of return to scale: constant returns to scale, increasing returns to scale, and decreasing returns to scale.
| 2. What is constant returns to scale? | |
Ans. Constant returns to scale occur when an equal percentage increase in all inputs leads to an equal percentage increase in output. In other words, if all inputs are doubled, the output will also double. This implies that the firm's production technology is efficient and does not experience any economies or diseconomies of scale.
| 3. What is increasing returns to scale? | |
Ans. Increasing returns to scale occur when an equal percentage increase in all inputs leads to a more than proportional increase in output. For example, if all inputs are doubled, the output will more than double. This suggests that the firm experiences economies of scale, leading to lower average costs as the scale of production increases.
| 4. What is decreasing returns to scale? | |
Ans. Decreasing returns to scale occur when an equal percentage increase in all inputs leads to a less than proportional increase in output. If all inputs are doubled, the output will increase by less than double. This implies that the firm experiences diseconomies of scale, resulting in higher average costs as the scale of production increases.
| 5. How do the laws of return to scale impact firm's profitability? | |
Ans. The laws of return to scale have a direct impact on a firm's profitability. If a firm experiences constant returns to scale, it can maintain its profitability as it expands its production. On the other hand, if a firm experiences increasing returns to scale, it can significantly increase its profitability as it expands its scale of production. However, if a firm experiences decreasing returns to scale, its profitability may decline as it expands, due to higher average costs.
Related Exams
About this Video
|
4.69/5 Rating |
|
Dec 20, 2024 Last updated |
Video Description: Laws of Return to Scale for CA Foundation 2024 is part of Business Economics for CA Foundation preparation.
The notes and questions for Laws of Return to Scale have been prepared according to the CA Foundation exam syllabus.
Information about Laws of Return to Scale covers all important topics for CA Foundation 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Laws of Return to Scale.
Introduction of Laws of Return to Scale in English is available as part of our Business Economics for CA Foundation for CA Foundation & Laws of Return to Scale in
Hindi for Business Economics for CA Foundation course. Download more important topics related with notes, lectures and mock test series for
CA Foundation Exam by signing up for free.
Description
Video Lecture & Questions for Laws of Return to Scale Video Lecture | Business Economics for CA Foundation - CA Foundation full syllabus preparation | Free video for CA Foundation exam to prepare for Business Economics for CA Foundation.
Information about Laws of Return to Scale
Here you can find the meaning of Laws of Return to Scale defined & explained in the simplest way possible.
Besides explaining types of Laws of Return to Scale theory, EduRev gives you an ample number of questions to practice Laws of Return to Scale tests,
examples and also practice CA Foundation tests.
|
124 videos|191 docs|88 tests
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Exam
,Important questions
,Semester Notes
,Laws of Return to Scale Video Lecture | Business Economics for CA Foundation
,MCQs
,past year papers
,Extra Questions
,Sample Paper
,Summary
,Previous Year Questions with Solutions
,Objective type Questions
,practice quizzes
,ppt
,study material
,shortcuts and tricks
,Free
,Viva Questions
,mock tests for examination
,Laws of Return to Scale Video Lecture | Business Economics for CA Foundation
,video lectures
,Laws of Return to Scale Video Lecture | Business Economics for CA Foundation
;
Study Laws of Return to Scale on the App
Students of CA Foundation can study Laws of Return to Scale alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Laws of Return to Scale,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Laws of Return to Scale is prepared as per the latest CA Foundation syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup