The following article will guide you about how to show returns to scale on an expansion path. A rational firm minimises cost by choosing the least cost combination of inputs. This happens in the short run (i.e., at a fixed point of time). However, in the long run a firm may decide to expand its volume of production in order [...]
In this article we will discuss about returns to scale. Also learn about the different and various types of returns to scale, explained with the help of a suitable graph. The effect that the proportionate increase in all inputs has an output is a question of returns to scale. A firm changes its scale when it increases all of its [...]
In this article we will discuss about the laws of returns to scale If the quantities of all the inputs used by a firm are increased by a particular proportion, then it is said that the scale of production of the firm has increased. For example, if all input quantities have increased three times, then we say the scale of [...]