Definition: Returns to Scale is a long existing economic concept. Diminishing returns to scale occur if at least one factor is fixed. This means that diminishing returns are typically a short run problem. It measures and reflects the change in output when all factor inputs are varied with the same percentage. They can be classified into 3 forms namely:
MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.
We like to keep things short, and provide links to learn more about your subject.
© 2023 MBA Brief - Last updated: 30-11-2023 - Privacy | Terms