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'''Decreasing returns to scale''' occur when the percent increase in productivity due to an increase in [[input]] is less than the percent the input was increased. For example, if a company increases its input by 50% and their output increases by only 25%, they have decreasing returns to scale.
'''Decreasing returns to scale''' occur when the percent increase in productivity due to an increase in [[input]] is less than the percent the input was increased. For example, if a company increases its input by 50% and their output increases by only 25%, it has decreasing returns to scale.
[[Category:Economics]]