Analysis of Returns to Scale Change and Economies of Scale Change
LI Shan-zhai
Abstract
LI Shan-zhai
Abstract
This paper analyzes the various implications of returns to scale and builds the indicators on scale yield,scale income,scale economy etc.It is verified that the returns to scale in current production theory is part of the indexes of marginal product of scale on long-term production.Then it analyzes the substantial cause of the returns to scale change and points out that the reverse changes between the efficiency of division of responsibilities and that of management decide the regularity for four stages change of the returns to scale comprehensively.Finally,it discusses the variety regulations on returns to scale of various meaning in various market competition types,under the three main factor price variety types,as well as their relations and differences.
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This paper analyzes the various implications of returns to scale and builds the indicators on scale yield,scale income,scale economy etc.It is verified that the returns to scale in current production theory is part of the indexes of marginal product of scale on long-term production.Then it analyzes the substantial cause of the returns to scale change and points out that the reverse changes between the efficiency of division of responsibilities and that of management decide the regularity for four stages change of the returns to scale comprehensively.Finally,it discusses the variety regulations on returns to scale of various meaning in various market competition types,under the three main factor price variety types,as well as their relations and differences.
Key concepts: Returns to scale, Scale (ratio), Variety (cybernetics), Economics, Production (economics), Economies of scale, Yield (engineering), Scale effects