What Is Restriction of Range and What Causes It? Explain

question 28

Essay

What is restriction of range and what causes it? Explain the consequences of restriction of range. Give an example.

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Definitions:

Inputs

The resources such as labor, materials, and capital that are used in the production process to create goods and services.

Returns To Scale

The rate at which output increases in response to proportional increases in all inputs or factors of production.

Production Function

An equation that describes the maximum amount of output that can be obtained from a given number of inputs.

Output

The total amount of goods or services produced by a company, country, or economic system.