Constant Returns to Scale
The definition of Constant Returns to Scale CRS. Constant returns to scale occur when a firms output exactly scales in comparison to its inputs. Rbse Solutions For Class 12 Economics Chapter 7 Concept Of Production Https Www Rbsesolutions Com Class 12 Economics Economics Textbook Factors Of Production Returns to scale in economics is the measure of proportional change in output with respect to the input factors in the long run at constant technology used for the production process. . With constant economic returns to scale there is an equivalent percentage increase in production inputs and outputs. The definition of constant returns to scale states that changes in the proportion of inputs in the production of goods will result in the same change in the proportion of outputs. Given a Cobb-Douglas production function example I show that its constant returns to scale. When inputs are increased in a given proportion and output