Difference between revisions of "Constant returns to scale"
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'''Constant returns to scale''' occur when a company increases its [[Input]] by x% and its output also increases by x%. If a company with constant returns to scale doubles its facilities, workers, and materials, the amount of products it makes will also double. | '''Constant returns to scale''' occur when a company increases its [[Input]] by x% and its output also increases by x%. If a company with constant returns to scale doubles its facilities, workers, and materials, the amount of products it makes will also double. | ||
| + | [[category:economics]] | ||
Revision as of 23:19, July 23, 2007
Constant returns to scale occur when a company increases its Input by x% and its output also increases by x%. If a company with constant returns to scale doubles its facilities, workers, and materials, the amount of products it makes will also double.