Law of Constant Returns:

If there is a situation that even increasing more units of variable factors of production could not cause the marginal productivity of a good to increase then this situation will be regarded as law of constant returns. “Other things remains same, the marginal utility will remain constant even increasing the number of variable factors of production”.

Table explains law of constant returntable of law of constant return In the table we can clearly see that increasing the number of labor and capital cannot cause marginal utility to increase, while total revenue is continuously of constant return


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