Decreasing Returns to Scale
Definition: Decreasing Returns to Scale ...
Decreasing returns
Definition: When the addition of a variable factor of production results in a fall in marginal product.
Decreasing returns to scale
A property of a production function such that changing all inputs by the same proportion changes output less than in proportion. Example: a function homogeneous of degree less than one.
Decreasing returns - A situation in which output is less than in proportion to inputs as the scale of firm's production increases. A firm in this situation with fixed factor prices, is an increasing cost firm.
DECREASING RETURNS TO SCALE: A given proportionate increase in all resources in the long run results in a proportionately smaller increase in production.
Contrasts with decreasing returns and constant returns.
Incremental capital output ratio ...
Coase notices a "decreasing returns to the entrepreneur function", including increasing overhead costs and increasing propensity for an overwhelmed manager to make mistakes in resource allocation. This is a countervailing cost to the use of the firm.
diseconomies of scale also called "decreasing returns to scale"; a situation where long-run average total cost increases as the output of a firm increases. (8)
disinflation a reduction in the inflation rate. (28) ...
Jacques Turgot and implied by Thomas Malthus in his Essay on the Principle of Population (1798), the law first came under examination during the discussions in England on free trade and the corn laws. It is also called the law of decreasing returns ...
 See also: Inputs, Perfect competition, Long run, Tip, Feedback
  
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