returns to scale

(redirected from Scale economies)

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 ?
"Progressively MGT is fulfilling its potential and unlocking scale economies and service efficiencies for cargo owners," underlines Hans-Ole Madsen, ICTSI Senior Vice President and head of EMEA.
"For customers, big and small, this means the site offers optimum scale economies, expansive customer facilities and great capacity for growth.
the key objectives of the lgps central pool are to: - meet the investment objectives of the partner funds - establish a collaborative platform through which administering authorities of the partner funds can aggregate their pension assets, with a view to providing scale economies and improved investment efficiency - create capacity to invest in asset classes which individual funds may find difficult to access - stimulate innovation, and provide an opportunity for funds to engage with the investment industry in finding new and creative approaches to the funding challenges faced by the lgps (and the wider pensions sector) - act as a responsible, long-term investor, u
Kasman (2005) examined the cost efficiency and scale economies of banks operating in Poland and the Czech Republic during the period from 1995 to 2000.
Employers of large-scale businesses can use their scale economies and workplace design.
The Minister emphasized the need to strengthen the sector, create products with higher added value, think in terms of Brand Tunisia, development of Tunisian brands and scale economies through bulk purchasing.
Fixed costs, being inelastic to the number of participants, account for much of the unused scale economies. Particularly information and communication technology, the basis of many pension fund activities, has strong fixed-cost components.
The concepts of returns to scale (RTS) and scale economies (SE) have a crucial position in economics and production theory.
In particular, it is widely asserted that larger local government entities will enjoy significant scale economies attendant upon their size in terms of population (Faulk and Grassmueck, 2012).
The authors' findings, taken as a whole, suggest that there are incentives for small banks to grow larger to exploit scale economies and to achieve other scale-related benefits in terms of credit-risk monitoring.
According to the companies, this new, combined platform will provide industry-leading topside systems with repeatable deliveries, scale economies and standardised interfaces, which are expected to reduce risk of construction delays and cost overruns for deepwater oil and gas customers.
In a similar vein, empirical scholars have examined the impact of proposed mergers on scale economies in local government in Tasmania (Drew et al., 2013; Marques et al., 2015), the greater Perth metropolitan region (Drew and Dollery, 2014a), and New South Wales (Drew and Dollery, 2014b; Drew, Kortt and Dollery, 2015), and all found that, in general, claimed scale economies would not have eventuated.