returns to scale

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returns to scale

the relationship between OUTPUT of a product and the quantities of FACTOR INPUTS used to produce it in the LONG RUN. Where, for example, doubling the quantity of factor inputs used results in a doubling of output then constant returns to scale’ are experienced. Where ECONOMIES OF SCALE are present, a doubling of factor inputs results in a more than proportionate increase in output. By contrast, where DISECONOMIES OF SCALE are encountered, a doubling of factor inputs results in a less than proportionate increase in output.
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However, once economies transitioned from manufacturing to service markets, the underlying mechanisms that determine economic behaviour shifted from diminishing to increasing returns. This shift is associated with a new modern economy of high-tech and the knowledge-based industries.
We will seek to achieve these aims by increasing returns from the Group's areas of strength, particularly in Asia and across our network; turning around low-return businesses of high strategic importance, particularly in the United States; investing in building a bank for the future with the customer at its center; and making it easier for our colleagues to do their jobs.
One of the most important reasons is that farm sector is governed mostly by the "Law of Diminishing or Decreasing Returns" while agri-business and food processing industries are governed mostly by the "Law of Increasing Returns".
The bank is looking to cut costs by reducing its assets and focussing on increasing returns from assets.
Accordingly, to avoid both of the aforementioned domain-boundary-based errors (i.e., either over-restriction or chaotic expansion), that is, to thereby move the entrepreneurship research field toward the coherence needed, for example, for paradigm development, while still aiding, abetting, and perhaps even accelerating exploration, it might be argued that the logic of increasing returns ought to be employed to provide a fresh framework for understanding, interpreting, and bounding the new world of entrepreneurship research in which we now find ourselves as a scholarly community.
Increasing returns while minimizing risks, expanding services while conserving capital, and holding down operating costs are the ways SI builds valuable long-term relationships.
Models of international trade based on increasing returns have been studied intensively in the past three decades.
From when and how to report to identifying risks, HOW TO CHEAT AT IT PROJECT MANAGEMENT holds all the answers to decreasing errors and increasing returns.
Arthur and David's explanation hinged on the presence of increasing returns along a variety of dimensions.
End consumer research tends to have an "increasing returns" element to it--the more you know and the longer you do it, the more benefit you get from it, and the harder it is for competitors to duplicate your knowledge base.
"We expect a free enterprise economy to underinvest in invention and research (as compared with an ideal)," he wrote, "because it is risky, because the product can be appropriated only to a limited extent, and because of increasing returns in use."
But these same studies also indicate that spending less on information technology is not a factor in increasing returns. The question, then, is whether information technology is a critical factor in sustained competitive advantage and increased cash flow in insurance.