The relation between output and the variation in all inputs taken together is the:

Question

Quizplus · Accepted Answer

The returns to scale characteristic of a production system refers to the relationship between the proportionate increase in all inputs and the proportionate increase in output. If the proportionate increase in output is greater than the proportionate increase in all inputs, the production system exhibits increasing returns to scale. If the proportionate increase in output is less than proportionate increase in all inputs, the production system exhibits decreasing returns to scale. And if the proportionate increase in output is equal to proportionate increase in all inputs, the production system exhibits constant returns to scale.

The Relation Between Output and the Variation in All Inputs