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.
References in periodicals archive ?
Checked-in baggage is an add-on for the Economy Saver category, and travelers purchasing Economy Saver tickets have the option to select the baggage option for a fee.
Among surveyed shoppers in the meat department, 35% say they are now purchasing economy packs as a strategy to save money, while only 27% indicated that they have shifted to purchasing less expensive cuts of meat.
Speaking at the BRC annual dinner, Alun Michael, minister for industry and the regions, told retailers that the minimum wage had helped make one million low-paid workers part of their purchasing economy.

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