Increasing Returns and Efficiency
Martine Quinzii
Abstract
Increasing returns to scale is an area in economics that is becoming more important in the literature. The economic phenomenon of increasing returns presents serious conceptual difficulties for the traditional competitive theory of resource allocation. While most firms exhibit constant or decreasing returns to scale, some firms manufacture products whose technology permits increasing returns to scale that are large relative to the market. These goods are an important component of economic activity in a modern economy and are typically commodities produced either by a public sector or, as in th ... More
Keywords: increasing returns, resource allocation, decreasing returns, economic activity, general equilibrium, production, efficiency, public sector, private sector
Bibliographic Information
| Print publication date: 1993 | Print ISBN-13: 9780195065534 |
| Published to Oxford Scholarship Online: October 2011 | DOI:10.1093/acprof:oso/9780195065534.001.0001 |
