Abstract
The technique of production of a commodity y may be characterized as a function of the required inputs x i :
If all inputs are multiplied by a positive scalar, t, and the consequent output represented as t s y, then the value of s may be said to indicate the magnitude of returns to scale.
This chapter was originally published in The New Palgrave: A Dictionary of Economics, 1st edition, 1987. Edited by John Eatwell, Murray Milgate and Peter Newman
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Eatwell, J. (1987). Returns to Scale. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_1480-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_1480-1
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Online ISBN: 978-1-349-95121-5
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Latest
Returns to Scale- Published:
- 13 March 2017
DOI: https://doi.org/10.1057/978-1-349-95121-5_1480-2
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Returns to Scale- Published:
- 18 November 2016
DOI: https://doi.org/10.1057/978-1-349-95121-5_1480-1