Term:
Returns to scale
Definition:
Returns to scale refers to the rate by which output changes if all inputs are changed by the same factor. Constant returns to scale: a k-fold change in all inputs leads to a k-fold change in output. Under increasing returns to scale, the change in output
Domain:
Economics & National Accounts
Source:
OECD Productivity Manual: A Guide to the Measurement of Industry-Level and Aggregate Productivity Growth, OECD, Paris, March 2001, Annex 1 – Glossary
