Returns to scale

Term referring to the change in outputs subsequent to a change in inputs. If outputs increase proportionately more than inputs there are increasing returns to scale, if outputs increase in line with inputs there are constant returns to scale, and if outputs increase proportionately less than inputs there are decreasing returns to scale.

Talk to Barnes Roffe today
Share this page:
Contact Us
ICAEW The Chartered Institute of Taxation ACCA IPG IR