00:01
So here we are talking about returns to scale, right? and i can distinguish the three of these things very easily, right? economies of scale would be if inputs go up by plus 10 % implies that output goes up by greater than 10%.
00:23
Right? whereas constant returns says that these things are equal, right? it says if you jack the inputs up by 10%, you get output plus 10%.
00:38
Conversely, dis -economies of scale, say the, again, they sort of complete the thing, right? if you get 10 % more inputs, now you are getting less than 10 % output.
00:53
Right? so you can see how those three things are sort of categorized along a continuum.
00:58
If you increase inputs by 10%, if you get more than 10 % out, it's economies of scale.
01:03
Just you get an additional 10 % out.
01:05
That's constant returns...