CONSTANT RESULT TO SCALE

Constant Returns to Scale: 

As stated above, constant returns to scale means that with the increase in the scale in some proportion, output increases in the same proportion. Constant returns to scale, otherwise called as “Linear Homogeneous Production Function”, may be expressed as follows:

                                       kQx = f( kK, kL)

                                                 = k (K, L)

If all the inputs are increased by a certain amount (say k) output increases in the same proportion (k). It has been found that an individual firm passes through a long phase of constant returns to scale in its lifetime.