Returns to scale refer to a special relationship between output and input. During production, this relationship refers to the connection between the changes that occur with the output and those that began in the input.
How does nnpc achieve internal economics of scale
differentiate between returns to scale and constant return to scale
My loose definition of constant returns to scale:Constant returns to scale occur when a given increase in output is brought about by the same proportional increase in returns.
THE LAW OF RETURNS TO mean that law in which we study about the different period of the production in which increasing , decreasing , and constant returns to scale is studied
The Law of Diminishing Returns is one of the powerful laws in economics. The Law of Economies of Scale is another law of similar importance. [And in that order IMHO]
How does nnpc achieve internal economics of scale
differentiate between returns to scale and constant return to scale
Economies of scale (costs decrease), diseconomies of scale (costs increase), constant returns to scale (costs stay the same)
My loose definition of constant returns to scale:Constant returns to scale occur when a given increase in output is brought about by the same proportional increase in returns.
THE LAW OF RETURNS TO mean that law in which we study about the different period of the production in which increasing , decreasing , and constant returns to scale is studied
The Law of Diminishing Returns is one of the powerful laws in economics. The Law of Economies of Scale is another law of similar importance. [And in that order IMHO]
The two major divisions of economics are microeconomics and macroeconomics. Microeconomics refers to economics on an individual scale, such as a home or business. Macroeconomics refers to economics on a much larger scale, such as a region, nation, or even the entire world, depending on which you want to study.
Rosalind L. Bennett has written: 'Indeterminacy with non-separable utility' -- subject(s): Diminishing returns, Economies of scale, Equilibrium (Economics), Mathematical models, Utility theory
'Economies of scale' means a proportionate amount of savings accruing from increased productivity.
AFC will decrease
They cant
i think you are refering to economies of scale, which is the reduction in unit costs due to an increase in size in the firm. these cost reductions may come in many areas, such as bulk buying. the more you buy the cheaper it is. this is also linked to dis-economics of scale, which is increased costs due to the large nature of a firm.