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On the Geometry of Constant Returns

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Abstract

Constant returns to scale, always a simplifying assumption, is often also much more: many important results depend critically on the very special properties of this class of production function. This paper provides a unified set of simple proofs for most of the crucial analytical properties of constant returns production and their implications for firm costs. Only familiar diagrams and high school geometry are used, and the proofs are written to be easily accessible to college sophomores.

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  • Jehle, Geoffrey A., 2000. "On the Geometry of Constant Returns," Vassar College Department of Economics Working Paper Series 49, Vassar College Department of Economics.
  • Handle: RePEc:vas:papers:49
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    File URL: http://irving.vassar.edu/VCEWP/VCEWP49.pdf
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