The change in output resulting from an increase in the quantities of factor inputs employed. Returns to scale can be shown by their effect on long-run average costs (LRAC). They can be increasing (output growing faster than inputs), constant (inputs...

An increase in output at a faster rate than the increase in factor inputs. From SMITH onwards, theorists of ECONOMIC GROWTH have been interested in investigating the circumstances in which there can be increasing returns to particular industries or...

A reduction in AVERAGE COST resulting from the growth in size of a firm, e.g. the managerial economics arising from the multiplant nature of a large firm or from its superior type of marketing...

see returns to...

In economics, returns to scale and economies of scale are related terms that describe what happens as the scale of production increases. They are different terms and are not to be used...