Difference between revisions of "Constant returns to scale"
(Created page with "Constant returns to scale is when expanding all inputs does not change the average cost of production. ==Definition== According to Principles of Economics by Timothy Ta...") |
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According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | ||
:[[Constant returns to scale]]. When expanding all inputs does not change the average cost of production. | :[[Constant returns to scale]]. When expanding all inputs does not change the average cost of production. | ||
+ | According to [[Macroeconomics by Mankiw (7th edition)]], | ||
+ | :[[Constant returns to scale]]. A property of a production function whereby a proportionate increase in all factors of production leads to an increase in output of the same proportion. | ||
[[Category: Economics]][[Category: Articles]] | [[Category: Economics]][[Category: Articles]] |
Latest revision as of 17:39, 1 July 2020
Constant returns to scale is when expanding all inputs does not change the average cost of production.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- Constant returns to scale. When expanding all inputs does not change the average cost of production.
According to Macroeconomics by Mankiw (7th edition),
- Constant returns to scale. A property of a production function whereby a proportionate increase in all factors of production leads to an increase in output of the same proportion.