Economy, asked by anushkajamble, 3 months ago

constant returns to scale is also called​

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Answered by Anonymous
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returns to scale

In economics, returns to scale describe what happens to long run returns as the scale of production increases, when all input levels including physical capital usage are variable. The concept of returns to scale arises in the context of a firm's production function

Answered by Homework4Me
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Explanation:

Returns to scale

Constant returns to scale or constant cost refers to the production situation in which output increases exactly in the same proportion in which factors of production are increased. In simple terms, if factors of production are doubled output will also be doubled. ... This is known as homogeneous production function.

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