Editing Elasticity (economics) (section)

=== Elasticity of scale ===
{{Main|Returns to scale}}
''Elasticity of scale'' or ''output elasticity'' measures the percentage change in output induced by a collective percent change in the usages of all inputs.<ref>Varian (1992). pp.16–17.</ref> A [[production function]] or process is said to exhibit [[constant returns to scale]] if a percentage change in inputs results in an equal percentage in outputs (an elasticity equal to 1). It exhibits [[increasing returns to scale]] if a percentage change in inputs results in greater percentage change in output (an elasticity greater than 1). The definition of [[decreasing returns to scale]] is analogous.<ref>Samuelson, W. & Marks, S. (2003). p.233.</ref><ref>{{cite journal|last=Hanoch|first=G.|year=1975|title=The Elasticity of Scale and the Shape of Average Costs|journal=[[American Economic Review]]|volume=65|issue=3|pages=492–497|jstor=1804855}}</ref><ref>{{cite journal|last1=Panzar|first1=J. C.|last2=Willig|first2=R. D.|year=1977|title=Economies of Scale in Multi-Output Production|journal=[[Quarterly Journal of Economics]]|volume=91|issue=3|pages=481–493|doi=10.2307/1885979|jstor=1885979}}</ref><ref>{{cite journal|last=Zelenyuk|first=V.|year=2013|title=A scale elasticity measure for directional distance function and its dual: Theory and DEA estimation|journal=European Journal of Operational Research|volume=228|issue=3|pages=592–600|doi=10.1016/j.ejor.2013.01.012}}</ref>