Economies of Scale
An examination of issues like economies of scale, economies of scope, and factor returns.
Increasing, Decreasing, and Constant Returns to Scale
Article answers the question "I was wondering if you could help me. If I have a production function that has both labor and capital as factors, how can I tell if it is increasing returns to scale, constant returns to scale, or decreasing returns to scale?"
Article answers the question "I was wondering if you could help me. If I have a production function that has both labor and capital as factors, how can I tell if it is increasing returns to scale, constant returns to scale, or decreasing returns to scale?"
Economies of Scale
Definition and usage of the term Economies of Scale.
Definition and usage of the term Economies of Scale.
Diseconomies of Scale
Definition and usage of the term Diseconomies of Scale.
Definition and usage of the term Diseconomies of Scale.
Constant Returns to Scale
Definition and usage of the term Constant Returns to Scale.
Definition and usage of the term Constant Returns to Scale.
Factor Returns and Scale Returns
Questions about increasing returns to scale and decreasing factor returns to scale are quite common in first and second year undergraduate economics. In " Factor Returns and Scale Returns", I show how to quickly answer such a question when it comes up on your final exam.
Questions about increasing returns to scale and decreasing factor returns to scale are quite common in first and second year undergraduate economics. In " Factor Returns and Scale Returns", I show how to quickly answer such a question when it comes up on your final exam.