Show That Increasing Returns to Scale Can Co-Exist with Diminishing

question 97

Essay

Show that increasing returns to scale can co-exist with diminishing marginal productivity.To do so,provide an example of a production function with IRTS and diminishing marginal returns.

---

Definitions:

Cellular Level

The level of organization that includes cells, the basic structural and functional units of all living organisms.

Negative Feedback Mechanism

A process where the output of a system dampens or reduces the processes leading to the output, maintaining system stability.

Parathyroid Glands

Small endocrine glands in the neck that produce parathyroid hormone, which regulates calcium levels in the blood and bone.

Pineal Gland

A small endocrine gland in the brain that produces the hormone melatonin, involved in regulating sleep-wake cycles.