Question

What do you mean by returns to scale ?​

Answer 1

Answer:

Returns to scale refers to the rate by which output changes if all inputs are changed by the same factor. Constant returns to scale: a k-fold change in all inputs leads to a k-fold change in output.

Explanation:

please follow me and please make brilliant me

Answer 2

Explanation:

Returns to scale refers to the rate by which output changes if all inputs are changed by the same factor. Constant returns to scale: a k-fold change in all inputs leads to a k-fold change in output.

Law of Increasing Returns to Scale

This law states that the volume of output keeps on increasing with every increase in the inputs. Where a given increase in inputs leads to a more than proportionate increase in the output, the law of increasing returns to scale is said to operate.

Three Examples of Economic Scale:

1. Q = 2K + 3L: To determine the returns to scale, we will begin by increasing both K and L by m. ...
2. Q=.5KL: Again, we increase both K and L by m and create a new production function. ...
3. Q=K0.3L0.2: Again, we increase both K and L by m and create a new production function.

Hope you got correct✔ answer..xd