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Decreasing returns to scale (view source)
Revision as of 05:04, July 11, 2009
, 05:04, July 11, 2009no edit summary
'''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%, it has 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 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.
[[Category:Economics]]
[[Category:Economics]]