Explain the relationship between the scale of production and returns to scale in the long run

1 answer:

riadik2000 [5.3K]2 years ago

3 0

In the long run, all factors of production are variable and subject to change in response to a given increase in production scale. While economies of scale show the effect of an increased output level on unit costs, returns to scale focus only on the relation between input and output quantities.

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