What is Reward for Scale???? What is the difference between economies of scale and economies of scal

Reward for scale analyzes the relationship between changes in the scale of production and the resulting changes in output. Only in the long run can an enterprise change all the factors of production, and then change the scale of production, so the analysis of the scale remuneration of an enterprise belongs to the long-term production theory. In microeconomics, the change in the size of a firm in the long run is defined as the change in the same proportion of all factors of production.

Suppose that a manufacturer only needs to invest labor and capital in the production process, and the input amounts are l and k, respectively, when the input of the two factors is doubled at the same time, that is, increased to 2l and 2k, it is said that the production scale of the manufacturer has doubled. The return to scale is to illustrate how output changes when factors of production are doubled at the same time. Is it doubled?

More than doubled? Or less than double. If the increase in production is exactly doubled, it is called a constant return to scale, if the increase in production is more than doubled, it is called an increasing return to scale, and then, if the increase in production is less than doubled, it is called a diminishing return to scale.

The change of scale remuneration of an enterprise can be divided into three situations: increasing remuneration to scale, unchanged remuneration to scale, and decreasing remuneration to scale: For example, suppose a factory with a monthly output of 100,000 tons of fertilizer uses 10 units of capital and 5 units of labor. Now that the scale of production of an enterprise is doubled, that is, 20 units of capital and 10 units of labor are used, there may be three changes in the returns due to this change in the scale of production

1) The proportion of the increase in output is greater than the proportion of the increase in production factors, that is, the output is more than 200,000 tons, which is called the increase in scale returns. (2) The proportion of the increase in output is less than the proportion of the increase in production factors, that is, the output is less than 200,000 tons, which is called diminishing returns on scale. (3) The proportion of the increase in output is equal to the proportion of the increase in the factors of production, that is, the output is 200,000 tons, which is called the constant return of scale.

There are three stages of incremental, constant and decreasing returns to scale, and the reason for the change of returns to scale is due to economies of scale or diseconomies of scale. Economies of scale refer to the reduction of the average cost of a product due to the expansion of the level of output, or the expansion of the scale of production.

Economies of scale are when the total output increases more than the total cost when the enterprise expands its scale, that is, the long-term average total cost decreases. Otherwise, it is called diseconomies of scale.

Remuneration of scale, also known as scale gain, is the income obtained by the firm due to the proportional change in the input of all factors of production (i.e., the change in the scale of production), which indicates the impact on the output (i.e., the total output) when the input of all factors of production increases in the same proportion. It is divided into three types: constant scale return, increasing scale return and decreasing scale return.

Increasing returns to scale: The proportion of growth in output is greater than the proportion of growth in inputs.

Increasing returns to scale: The proportion of growth in output is smaller than the proportion of growth in inputs.

Intrinsic economy: When the scale of the enterprise increases, the average total cost decreases due to its own internal factors. Otherwise, it is called intrinsically uneconomic.

Extrinsic economy: The expansion of the industry scale has reduced the average total cost of a single manufacturer. Otherwise, it is called external uneconomic.

Other things being equal, the change in output brought about when various factors of production within the enterprise change in the same proportion. The change of scale remuneration of enterprises can be divided into three situations: increasing scale returns, unchanged scale returns and decreasing scale returns. The proportion of the increase in output is greater than the proportion of the increase in factors of production, and this situation is called an increasing return to scale.

Western economists have pointed out that generally speaking, the change of the scale remuneration of enterprises shows the following law: when the enterprise begins to grow rapidly from the initial stage of small business start-up, it is in the stage of increasing scale return.

Driven by the pursuit of profits, enterprises will continue to expand their production scale after tasting the benefits of expanding their production scale, and their profits will slowly enter the stage of unchanged scale. If we continue to expand the scale of the enterprise by pursuing market dominance and market share excessively, it is possible to enter the stage of diminishing returns to scale.

The change of returns to scale refers to the change in output brought about when various factors of production within the enterprise change in the same proportion under the same conditions.

Remuneration for scale is a concept of long-term production. Increasing returns to scale, constant returns to scale, and decreasing returns to scale refer to the proportion of the increase in all factors of production in long-term production that is less than, equal to, or greater than the proportion of the increase in output caused by it, respectively. In the process of exaggerating large-scale production, enterprises generally go through three stages: increasing returns to scale, unchanged returns to scale, and decreasing returns to scale.

When the proportion of output is greater than the input, the return to scale increases, and less than the return to scale decreases, which means that the return to scale remains unchanged.

Economies of scale correspond to economies of scope, when the enterprise expands, it is located in the part of the LAC curve that declines, which is the meaning of a bit of a big store bully, I buy in large quantities must be lower than you buy alone, like Wal-Mart is economies of scale.

The scope of economy is about the scope of business, that is, to do everything, he will be on the integration of internal resources, such as Lenovo is not only a computer, he also does real estate, to achieve diversified development.

LZ is all hand-beaten.

The change in output caused by the change of various production factor families within the enterprise in the same proportion.

The proportion of the increase in output is greater than the proportion of the increase in the factors of production, and this situation is called the increasing return to scale. f(into l, into k) > into f(l,k) are the mathematical explanations from which the above definitions are derived.

q＝f（l，k）＝2×l^。

f（λdul，λk）＝zhi2×（λl）。

is a homogeneous function, and the order is .

q=3l+2k。

For example, 3 (2L) + 2 (2K) = 2q.

That is, l and k are multiplied by 2, and q also changes by 2 times at the same time, so this is the case where the scale reward remains the same.

q=(2l+2k)^(1/2)。

2(2L)+2(2K)) 1 2)=Root number 2q, this is not double.

q=3lk^2。

q=l^(1/2)k(1/2)。

q=4l^(1/2)+4k。

1. The way to determine the business is different.

Economies of scale are through the form of announcements to invite unspecified businessmen to participate in the bidding, which can motivate businessmen to consciously apply high-tech to the procurement of products, and at the same time transfer procurement risks.

In addition to the announcement, the scale remuneration may also be recommended in writing by the purchaser and the evaluation experts, or randomly selected from the ** business pool established by the financial department at or above the provincial level, and the goods or services that meet one of the following circumstances may be subject to competitive negotiation in accordance with this Law.

2. The date of issuance of the document is different.

The requirement for economies of scale is that from the date of issuance of the bidding documents to the date of submission of the bidding documents, not less than 20 days;

The requirement for scale remuneration is from the date of issuance of the negotiation document to the date of submission of the first response document by the first business, which shall not be less than 3 working days;

3. The influencing factors are different.

Economies of scale are important factors that directly affect the size of the market. On the one hand, the scale reward is subject to the influence of macroeconomic conditions, and on the other hand, it is affected by the national income distribution policy and consumption policy.