The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Returns to Scale

  • John Eatwell
Reference work entry


The technique of production of a commodity y may be characterized as a function of the required inputs xi:If all inputs are multiplied by a positive scalar, t, and the consequent output represented as tsy, then the value of s may be said to indicate the magnitude of returns to scale.


Constant returns Decreasing returns Dynamic increasing returns Increasing returns Indivisibilities Returns to scale Substitution Technical change 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • John Eatwell
    • 1
  1. 1.