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    Returns to Scale Defined

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    Define returns to scale. Do you think that most
    businesses are increasing, constant, or decreasing
    returns to scale.

    © BrainMass Inc. brainmass.com November 24, 2022, 11:51 am ad1c9bdddf

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    Returns to scale are technical properties of the production function, y = f(x1, x2, ..., xn). If we increase the quantity of all factors employed by the same (proportional) amount, output will increase. The question of interest is whether the resulting output will increase by the same proportion, more than proportionally, or less than proportionally. These three basic ...

    Solution Summary

    The expert defines the return to scales.