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  • Firm's Choice of Production Technology

Increasing Returns to Scale

Increasing returns to scale occur in a production process when increasing all inputs by a certain proportion results in output increasing by a larger proportion. This is a technological property of production and is a primary source of economies of scale, but the two concepts are not synonymous, as economies of scale can also arise from other factors like spreading fixed costs.

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  • Firm's Decision on Input Quantity

  • Choosing Production Technologies

  • Modeling Technologies with Fixed Proportions and Constant Returns to Scale

  • Increasing Returns to Scale

  • Decreasing Returns to Scale

  • Constant Returns to Scale

Learn After
  • Economies of Scale vs. Increasing Returns to Scale