Idiom
returns to scale
Meaning
a function describing how returns scale when production increases in the long run
Meaning adapted from Wiktionary, available under CC BY-SA 4.0.
Examples
“The factory sees better returns to scale as it grows.”
“When the company doubled its equipment, it achieved higher returns to scale by reducing the cost per unit.”
“Economists analyze whether a firm experiences increasing or decreasing returns to scale by observing how output changes relative to the proportional expansion of all inputs.”
Examples
simple
“The factory sees better returns to scale as it grows.”
contextual
“When the company doubled its equipment, it achieved higher returns to scale by reducing the cost per unit.”
complex
“Economists analyze whether a firm experiences increasing or decreasing returns to scale by observing how output changes relative to the proportional expansion of all inputs.”
Key words
Related idioms
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