Rybczynski theorem

Definition

Economics

  • noun a theory developed by the Polish-British economist Tadeusz Rybczynski (1923–1998) that when considering an economy with two factors of production contributing to two goods, with constant returns to scale, if the input of one factor is increased the output of the good which uses that factor will increase while the output of the other good which uses the other (constant) factor will decrease
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