Related Content

Related Overviews


More Like This

Show all results sharing these subjects:

  • Social sciences
  • Economics


Show Summary Details


increasing returns to scale

Quick Reference

In a productive process, average productivity increasing with output. This means that increasing all inputs in the same proportion results in a more than proportional increase in output. Formally, consider the function

f(x1,…, xn).

If the function satisfies the assumption of increasing returns to scale then

f(λx1,…,λxn) >λf(x1,…, xn)

for any λ > 1.

Subjects: Social sciencesEconomics

Reference entries