Question

When does a production function satisfy increasing returns to scale?

NCERT Class XII
Economics - Introductory Microeconomics

Chapter 3. Production and Costs

Answer 1

Increasing returns to scale : when all the inputs are increased in a given proportion and output increases in a greater proportion,returns to scale are increasing.Thus,if all inputs are increased by 100% and output increases by more than 100% ,then returns to the scale are increasing.