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The organization you are working for wants to increase its annual production, measured in units, by 50%. Also, assume that your organization's output 1) is
The organization you are working for wants to increase its annual production, measured in units, by 50%. Also, assume that your organization's output 1) is an increasing function of only capital and labor and 2) that the law of diminishing returns to a single factor holds for both capital and labor.
In addition to changing its employment, your organization can increase its capital as well. Without using any math, explain why the information about diminishing returns to each single factor is consistent with any type of returns to scale.
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