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Economies of scale (costs decrease),

diseconomies of scale (costs increase),

constant returns to scale (costs stay the same)

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12y ago

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Difference between returns to scale and constant return to scale?

differentiate between returns to scale and constant return to scale


Define constant returns 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.


What is the law of returns to scale?

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


Scale definition and types of scale?

Types of scales are:Guttman ScaleThurston ScaleRating ScaleLikert Scale


When a firm experiences increasing returns to scale its?

AFC will decrease


Define economies of scale How does this relate to returns to scale Cite and briefly discuss the main determinants of economies of scale?

Cite and briefly discuss the main determinants of economies of scale.


What is returns to scale in economics?

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.


What is the difference between returns to scale and economies of scale in terms of their impact on a firm's production efficiency and cost structure?

Returns to scale refer to the change in output when all inputs are increased proportionally, while economies of scale refer to the cost advantages a firm gains as it increases its production levels. Returns to scale can impact a firm's production efficiency by affecting the overall output, while economies of scale can impact a firm's cost structure by reducing the average cost per unit as production increases.


What is the relationship between economies of scale and returns to scale in the context of production efficiency?

Economies of scale refer to cost advantages that come from producing more units of a good or service, leading to lower average costs. Returns to scale, on the other hand, measure how output changes in response to a proportional increase in all inputs. In terms of production efficiency, economies of scale indicate that as production increases, costs per unit decrease, while returns to scale show how efficiently inputs are being utilized to increase output.


What are the different types of scales?

They are verbal scale, Linear Scale and fraction scale.


What are different types of scaling?

They are verbal scale, Linear Scale and fraction scale.


What is the difference between diminishing returns and diseconomies of scale?

The principle of diminishing marginal returns to inputs is when more on one input is added, while other inputs are held constant, the marginal product of the input diminishes. Diseconomies of scale or decreasing returns to scale is when the a firm doubles its inputs, output increases by less than double. With diminishing returns, only one input is being changed while holding the other is fixed. But for decreasing returns, both inputs may change