Returns To Scale

+**Returns To Scale**

+Returns to scale describe how a proportional increase in all [inputs](/wiki/input) affects the quantity of output produced. It determines whether increasing production leads to proportionally greater (increasing), equal (constant), or smaller (decreasing) output, a key concept in [production theory](/wiki/production_theory).

+## See also

+- [Economies of Scale](/wiki/economies_of_scale)

+- [Cost Function](/wiki/cost_function)