Difference between revisions of "Returns to scale"
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| − | Returns to scale are the increase in percent output due to an increase in all the inputs. If output has a percent increase greater than inputs, then there is [[increasing returns to scale]]; if output has a percent increase less than the percent increase by inputs, then there is [[decreasing returns to scale]]. | + | '''Returns to scale''' are the increase in percent output due to an increase in all the inputs. If output has a percent increase greater than inputs, then there is [[increasing returns to scale]]; if output has a percent increase less than the percent increase by inputs, then there is [[decreasing returns to scale]]. |
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 20:39, November 25, 2008
Returns to scale are the increase in percent output due to an increase in all the inputs. If output has a percent increase greater than inputs, then there is increasing returns to scale; if output has a percent increase less than the percent increase by inputs, then there is decreasing returns to scale.