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...Summary and conclusions one of the objectives this study was to provide an explanation widely observed phenomenon increasing returns labor services or short run scale it seen in ch that basic model previous studies which is based on postulation a production function lagged adjustment process yielded unrealistically large estimates parameter input variable these results achieved inch using seasonally unadjusted monthly data for seventeen three digit united states manufacturing industries considered were not unique type used same kinds have also been adjusted quarterly more aggregated industry groups developed employment demand but examined relationship between output per man hour directly found be positive almost all cases further presented showed most even at high rates where presumably there should very little slack findings appear inconsistent with law diminishing marginal productivity classical economic theory given idea firms hold amounts excess during much year true inputs are con...