Definition: Returns to scale

OECD terminology

The rate by which output changes if all inputs are changed by the same factor. Constant returns to scale: a k-fold change in all inputs leads to a k-fold change in output. Under increasing returns to scale, the change in output is more than k-fold, under decreasing returns to scale; it is less than k-fold.
Source:
Organization for Economic Cooperation and Development (OECD), "Measuring Productivity - OECD Manual: Measurement of Aggregate and Industry-Level Productivity Growth", Paris, 2001
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