constant returns to scale
- noun situation in which a proportionate increase in all costs results in an equivalent increase in output
- acronymCRS (written as Constant Returns to Scale)
- acronymCRTS (written as Constant returns to scale)
- constant returns to scale
- (written as Constant Returns to Scale)A feature of production functions. A production function exhibits constant returns to scale if increasing all factors of production (inputs) in the same proportion increases outputs by the same proportion. The way in which output responds to changes in a single input is not the same as the response, here described, to a change of scale, where all inputs vary.