Economics A-Level
Decreasing returns to scale
What Decreasing returns to scale means in Economics A-Level, as defined for AQA.
Definition of Decreasing returns to scale
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Reference: AQA
A situation where a proportionate increase in all inputs leads to a less than proportionate increase in output.
Topics that use Decreasing returns to scale
- The law of diminishing returns and returns to scale (AQA A-Level)
Related terms
- Capacity constraints
- Costs of production
- Diminishing marginal returns
- Economies of scale
- Factor inputs
- Factors of production
- Law of diminishing returns
- Long run
Using Decreasing returns to scale in the exam
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