Component Returns to Scale Using Parametric Approach in Component Scale Economies

A manager looks for a scale to provide information about change in one particular output component where the change has been applied to each one of the output indicators and when non-proportional changes is applied to the inputs. In this article was examined nonproportionalchanges made in each output indicator after applying non-proportional changes to each input indicator that calculation of the qualitative and quantitative value of returns to scale on non-radial basis has not been adequately studied in previous studies. In the parametric approach to attain the qualitative and quantitative value of Component Returns to Scale using Non-radial Output-oriented of Component Scale Economies was explained and proceeded with solving some examples of product function.

Keywords:

Product function , Scale economies , Scale elasticity