Question
Explain the likely behaviour of total product under the phase of increasing return to a factor with the help of numerical example.
Solution
Increasing return to a factor is the first phase of the Law of return to a factor. When more and more units of a variable factor is combined with fixed factor up to a certain level total physical product increases with increasing rate.
| Machine | Unit of Labour | Total Physical Product |
| 1 | 1 | 10 |
| 1 | 2 | 24 |
| 1 | 3 | 42 |
