Returns to Scale

04/20/19

“How does cost scale with physical production?”

Cost tends to scale with increased production of a particular element. However, the amount of cost of each item might get larger or smaller! The rate of change of each element to increased production is known as the Returns to Scale. This information is vital for the renewable energy industry, as the optimal deployment size will depend on the best return to scale.

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https://sites.google.com/site/economicsbasics