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It is the same as Law of Diminishing Returns. Which is the postulate that as more units of a variable resource are combined with a fixed amount of other resources, using additional units of the variable resource will eventually increase profit only at a decreasing rate.

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16y ago

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What type of variables is return on investment?

This variable is not constant. Your return on investment can depend on how much you put into it, how much you make from it, and other factors.


What is the difference between variable proportions and returns to scale?

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It is the same as Law of Diminishing Returns. Which is the postulate that as more units of a variable resource are combined with a fixed amount of other resources, using additional units of the variable resource will eventually increase profit only at a decreasing rate.


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