Political economy

Bibliographic data

Monograph

Identifikator:: 867647221

URN:: urn:nbn:de:zbw-retromon-93157

Document type:: Monograph

Author:: Chapman, Sydney John http://d-nb.info/gnd/123743141

Title:: Political economy

Place of publication:: London [u.a.]

Publisher:: Williams & Norgate [u.a.]

Year of publication:: 1912

Scope:: 1 Online-Ressource (255 Seiten)

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

68 POLITICAL ECONOMY to some extent by the greater scope afforded for specialism. We are here in touch with the conceptions of increasing and decreasing returns. When the enlargement of an industry is accompanied by a rise in marginal cost it is usual to say that the industry is subject to decreasing returns. But when the enlargement of an industry is accompanied by a fall in marginal cost, it is usual to say that it is subject to increasing returns. When marginal costs remain the same it is said that the industry is subject to constant returns. Why these phrases “ in creasing returns,” “ decreasing returns,” and “ constant returns ” are employed in the cases imagined will be readily grasped. If the cost of production of the new marginal firm is beneath that of the old marginal firm, the output per unit of cost of the former firm must be greater than the output per unit of cost of the latter. The outputs or returns of the industry at the margin will, therefore, have increased with an extension of the industry. Hence the use of the term “ increasing returns,” and the equal appropriateness of the terms “ decreasing returns ” and “ constant returns ” in the cases to which they apply. The conceptions of increasing, decreasing,

Access restriction

Copyright

fullscreen: Political economy

Monograph

Table of contents

Download

Monograph

This page

Image fragment

Citation links

Citation recommendation