Difference between revisions of "Decreasing returns to scale"

From Conservapedia
Jump to: navigation, search
(Undo revision 1023876 by Gibbertq (talk))
 
Line 2: Line 2:
  
 
For example, if a company increases its input by 50% and their output increases by only 25%, the company has decreasing returns to scale.
 
For example, if a company increases its input by 50% and their output increases by only 25%, the company has decreasing returns to scale.
 
It is still unknown how long it will take before the anti-vandalism patrol gets me. Given the average intelligence of conservatives, however, I would say "very long".
 
  
 
[[Category:Economics]]
 
[[Category:Economics]]

Latest revision as of 22:54, 18 December 2012

Decreasing returns to scale occur when the percent increase in productivity due to an increase in input is less than the percent all the inputs were increased.

For example, if a company increases its input by 50% and their output increases by only 25%, the company has decreasing returns to scale.