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# Difference between Returns to Factor and Returns to Scale

### What is Returns to Factor?

Returns to a factor refer to the rise in the total product that results from increasing just one factor while holding the other factors constant. The production of the firm displays the Law of Variable Proportions in the short term when one input is variable, and the other inputs are fixed. There are three phases of Returns to Factor; viz., Increasing Returns to a Factor, Decreasing Returns to a Factor, and Negative Returns to a Factor.

### What is Returns to Scale?

Returns to scale refer to the change in output that results from a change in the factor inputs simultaneously in the same proportion in the long run. Simply put, when a firm changes the quantity of all inputs in the long run, it changes the scale of production for the goods. There are three stages of Returns to Scale; viz., Increasing Returns to Scale, Constant Return to Scale, and Diminishing Returns to Scale.

### Difference between Returns to Factor and Returns to Scale

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