Translate

Visit to www.mrmcse.com

08 March 2018

What is return to scale




Return to scale: The return to scale reflects the impact an output of a balanced increase in all inputs. A technology in which doubling all inputs leads to an exact doubling of outputs displays constant returns to scale. When doubling inputs leads to less than double the quantity of output, the situation is one of decreasing (increasing) return to scale.



No comments:

Post a Comment