law of cost.
law of cost is totally opposite of the law of Returns.
following are briefly described,
1. The law of increasing costs.
When reduction in the marginal product on each additional labor or capital From which increases in the cost So it is called the law of increasing costs
2. law of constant cost
There is no difference in cost when every increase is equal to the finished product on labor or capital. So it is called the law of constant cost.
3. The law of diminished cost.
The law of constant return is also called the law of diminished cost. Costs are reduced when the surplus production increases with each additional labor or capital. So this is called the law of diminished cost.
from the desk of M.A f Saleem.
