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# Learn Financial Freedom Step by Step

There is big effect of law of return on the normal price. It must be remembered that in long period, industry suppl curve is marginal cost curve. If there is small change in supply price or marginal cost, there is change in normal price.

1. Normal price and law of increasing return

We also say law of increasing return as law of decreasing cost. When we increase production in industry for increasing supply in long time period, industry gets lots of saving of costs. So, both marginal and average cost will decrease. Because normal price is equal to marginal cost and average cost price, so, it will also decrease. So, increasing production apply law of increasing return, price will decrease with increasing production

2. Normal Price and Law of Diminishing Returns

This law is also called law of increasing cost. As per this law, when production will increase, there will lots of losses to industry due to this. So, marginal and average cost will increase and normal price will increase when industry try to increase supply with increase in production.

3. Normal Price and Law of Constant Return

As per this law when the production has increased, marginal and average cost will constant, there will not effect on it. So, normal price will not change.

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Svtuition: Normal Price and Law of Return
Normal Price and Law of Return