The document outlines assumptions of the law of returns including all production factors being variable except the enterprise, workers using given tools, no technological changes, and perfect competition. It then provides a table showing total and marginal returns at different scales of production, demonstrating initially increasing returns, then constant returns, and eventually diminishing returns as the scale increases.

1. ASSUMPTIONS
• All factors (inputs) are variable but enterprise is fixed.
 This Assumption states that, all productions factors i.e. Land, labor, Capital and
Entrepreneur are variable but the firm or enterprise concerned with production is
fixed.
• A worker works with given tools and implements.
 The given statement means the worker is given the required tools and implementation
method which will directly increase the input.
• Technological changes are absent.
 No scientific or technological development affects the law.
• There is perfect competition.
 It means there are large number of buyers and sellers selling a homogenous product,
etc. in the particular industry.

2. Returns to scale in physical units
Unit Scale of Production Total Returns Marginal returns Stage of return
1 1 worker + 2 Acres Land 8 8 Increasing return
2 2 workers + 4 Acres Land 17 9 Increasing return
3 3 workers + 6 Acres Land 27 10 Increasing return
4 4 workers + 8 Acres Land 38 11 Constant return
5 5 workers + 10 Acres Land 49 11 Constant return
6 6 workers + 12 Acres Land 59 10 Diminishing return
7 7 workers + 14 Acres Land 68 9 Diminishing return
8 8 workers + 16 Acres Land 76 8 Diminishing return