Difference between revisions of "Decreasing returns to scale"
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(New page: '''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 compa...) |
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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%, | + | '''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. |
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| + | [[Category:Economics]] | ||
Revision as of 22:30, May 20, 2007
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.