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can someone give me a real-life example of the law of INCREASING returns? - John Ansong - 11-27-2012 06:51 AM
can someone give me a real-life example of the law of INCREASING returns to scale? Thanks
Thanks to Ron, but im still sort of confused. The law of increasing returns to scale states that when ALL inputs are doubled, the output is more than doubled. So for the example with the pharmaceutal companies, what would the input and outputs be?
- ronwizfr - 11-27-2012 06:59 AM
Twitter and Facebook: The more members the more value, and the increasing number of members will attract more and more people.
Pharmaceutical companies might have to spend $100 million or more to develop a new vaccin, but once the first bottle has been produced the following are essentially without cost.