Generalized Method to Understanding Returns to Scale

Abstract

Returns to scale is usually well understood in the case of a homogeneous production function while scholars tend to neglect the framework of the returns to scale on a practically significant basis, especially in case of non-homogeneous production function the idea of return to scale is quiet non-intuitive this paper successfully recognizes a simple method for the understanding of returns to scale under a general framework of the production function, and reflects upon the importance of simplification of the concept.