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Returns to Scale

The New Palgrave Dictionary of Economics

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Abstract

The technique of production of a commodity y may be characterized as a function of the required inputs x i :

$$ y=f\left({x}_1,{x}_2,\dots {x}_n\right) $$

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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  1. http://link.springer.com/referencework/10.1007/978-1-349-95121-5

    John Eatwell

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  1. John Eatwell
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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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    • Publisher Name: Palgrave Macmillan, London

    • Online ISBN: 978-1-349-95121-5

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    Chapter history

    1. Latest

      Returns to Scale
      Published:
      13 March 2017

      DOI: https://doi.org/10.1057/978-1-349-95121-5_1480-2

    2. Original

      Returns to Scale
      Published:
      18 November 2016

      DOI: https://doi.org/10.1057/978-1-349-95121-5_1480-1