Diewert, Walter E. (contributor) - 2001 - [Elektronische Ressource]
example of a returns to
scale effect due to the existence of fixed costs is the square root inventory replenishment rule … proportional to the square root of anticipated demands: “Suppose now the number of
members in the club to be doubled or trebled … or three but the square root of two or
three”.
26 Hicks gave great importance to this factor. “The evolution of the …