increasing returns

definition: Each addition of the factor of production contributes more to the total output than each preceding factor did - The marginal productivity increases with each additional factor connected key terms:law of marginal return | marginal productivity | diminishing returns | negative returns

everyday examples

▪ when building a house, start with a piece of land. then you add the foundation, then the wood, then the nails to connect the wood ▪ each piece adds onto the last piece to get to the end product

navigation

Chapter 1 ▪ unit 1 ▪️ unit 2 ▪ unit 3 ▪ home