Monday, September 13, 2010

increasing return

Increasing returns creates competition among businesses that deals with a similar product. The companies fix their product to be better and do something different than the next. So when a company has a good product that is better than the rest it will increase in their output and an increase in their returns to scale. If a company can some how spend less money but at the same time sale more of thier product that will increase net profit. Anytime that net profit goes up there will also be an increase in returns. Technology is one way this is happening in our econony today. Technology is taking jobs away from real people and doing the job better.

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