- It shows low cost of production varies input when one factor is fixed
- It shows how the producer substitute one factor changes and for the other when the relative price of factor changes and marginal product remains unchanged.
- When the producer is experiences increasing scaleless variable factor should be employed return in scale.
Return to scale is a long run phenomenon when all factors of production are varies side of production and change in output as a result of change in the scale of production return changes in the factor occurs in the same percentage or proportion
