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]].
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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]].
  
 
[[Category:Economics]]
 
[[Category:Economics]]

Revision as of 15:39, 25 November 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.