Returns to Scale

What Does "Returns to Scale" Mean?

"Returns to scale" is an English idiom. It means "an economic concept referring to the increase in output or production that results from a proportional increase in the use of all inputs or factors of production."

Examples in Sentences

Here are three examples of the idiom "returns to scale" used in a sentence:

• The factory's returns to scale allowed it to produce more units without significantly increasing its costs.
• Understanding returns to scale is crucial for optimizing production processes and resource allocation.
• The company's growth strategy was based on achieving favourable returns to scale in its operations.

What Is an Idiom?

An idiom is a commonly used expression whose meaning does not relate to the literal meaning of its words. In other words, if you were to translate "Returns to Scale" word for word, there is no guarantee the translation would help you to understand the meaning.

An idiom often includes a cultural or historical context that makes it difficult for non-native English speakers to understand. A phrase is classified as an idiom when a direct translation of the words does not reveal the meaning. Most idioms rely on shared knowledge or experiences known only to a specific community.

A Quick Test

You now know what "returns to scale" means, but are you good at English idioms? Let's see! Show Instructions