LAND UTILIZATION Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
Laws of returns to scale
Meaning : The laws of returns to scale refer to the effect of changes in the scale of production. The responsiveness of output to a give proportionate change in the quantities of all inputs is called returns to scale.
It shows what proportion output changes when there is some proportionate change in the amount of all inputs.
There are three possibilities of rate at which output changes in response to a change in scale of output i.e
a) Constant returns to scale
b) Increasing returns to scale
c) Decreasing returns to scale
Labour Capital Output returns to
Units. Units. Scale
1. 1. 10. Constant
2. 2. 20. Constant
3. 3. 30. Constant
1. 1. 10. Increasing
2. 2. 40. Increasing
3. 3. 100. Increasing
1. 1. 10. Decreasing
2. 2. 14. Decreasing
3. 3. 17. Decreasing
Constant returns of scale
When all the factors of production are increased in a given proportion , the output would also increase in same proportion,it is said to be constant returns to scale. If all the inputs are reduced by given proportion , output is reduced by same proportion. It will give a output line that is linear .
Increasing returns to scale
When all the factors are increased in given proportion ,the output of given increases by a greater proportion,it is said to be increasing returns to scale.The proportionate increase in use of labour and capital results in more than a proportionate increase in output. It will give a output line that is concave from above.
Causes
a) Specialisation in specific field of tasks gives a rise.
b)Use of specialised machinery leds to increasing returns to scale.
c)Economies of large scale which is effective in bringing down cost of production.
d) Indivisibility is also a another source of increasing returns to scale.
Decreasing returns to scale.
When all the factors are increased in given proportion,the output of given increases by lesser proportion,it is said to be decreasing returns to scale.The proportionate increase in use of labour and capital results in less than a proportionate increase in the output.
Causes
a)Diseconomies of large scale
b) Exhaustible natural resources
c)External Diseconomies
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