Returns to scale

Returns to scale

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 5: Theory of Production

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of returns to scale.
• Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

• Laws of returns to scale

Detailed Microsyllabus

1. Returns to scale

   1. Proportionate changes in all inputs in the long run.
   2. Increasing, constant and decreasing returns.
   3. Distinguish returns to scale from variable proportions.

2. Production analysis

   1. Identify returns from changes in output relative to inputs.
   2. Interpret technological reasons for different scale responses.
   3. Relate the concept to expansion decisions.

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Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.