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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
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.
Increased attention to purchasing economy leads to a selective approach towards suppliers - source selection and multiple sourcing are more frequent than before.

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