diminishing returns to scale
- See decreasing returns to scale, which is the preferred term in order to distinguish it from diminishing returns to a single factor when at least one other is held fixed.
- plural noun a situation in which further inputs are made but output does not rise proportionately
- (written as Diminishing Returns to Scale)A feature of production functions. A production function exhibits diminishing returns to scale if increasing all inputs in the same proportion increases outputs by a smaller proportion.
- synonymDecreasing Returns to Scale