returns to scale

Definitions

Economics

  • plural noun the relationship between output and the factors of production which go into its production. If a factor of production increases and output increases less in proportion, this is called decreasing returns to scale; if output increases in exact proportion, this is called constant returns to scale and if output increases more than the input this is called increasing returns to scale.

Health Economics

  • (written as Returns to Scale)
    These describe what happens to the rate of output as all inputs are increased in the same proportion.
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