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  • Law of Returns To Scale

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    Ragul Renganath
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    The document discusses the law of returns to scale in production functions. It explains that returns to scale refer to how total output changes as total inputs change proportionally. There are three types of returns to scale: increasing returns to scale where a 1% increase in all inputs leads to more than a 1% increase in output, decreasing returns to scale where a 1% increase in inputs leads to less than a 1% increase in output, and constant returns to scale where a 1% change in inputs leads to exactly a 1% change in output.

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    Law of Returns to Scale

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    The document discusses the law of returns to scale in production functions. It explains that returns to scale refer to how total output changes as total inputs change proportionally. There are three types of returns to scale: increasing returns to scale where a 1% increase in all inputs leads to more than a 1% increase in output, decreasing returns to scale where a 1% increase in inputs leads to less than a 1% increase in output, and constant returns to scale where a 1% change in inputs leads to exactly a 1% change in output.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views5 pages

    Law of Returns To Scale

    Uploaded by

    Ragul Renganath
    The document discusses the law of returns to scale in production functions. It explains that returns to scale refer to how total output changes as total inputs change proportionally. There are three types of returns to scale: increasing returns to scale where a 1% increase in all inputs leads to more than a 1% increase in output, decreasing returns to scale where a 1% increase in inputs leads to less than a 1% increase in output, and constant returns to scale where a 1% change in inputs leads to exactly a 1% change in output.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    The law of Return to Scale in Production Functions

    R.Ragul Renganath
    I-st Year BA
    September 23,2022 ECONOMICS
    Law of returns to scale

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