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This increasing return to scale makes big digital companies much more profitable than small ones.
Efficiency was calculated using a constant return to scale with an input-oriented Charnes-Cooper-Rhodes (CCR) formulation method.
Our current financial accounting model cannot capture the principle value creator for digital companies: increasing return to scale on intangible investments.
One reason is that our current financial accounting model cannot capture the principle value creator for digital companies: increasing return to scale on intangible investments.
This paper proposes a solution to the trade-off between energy-efficiency and resilience in communication networks, where the energy profiles express the decreasing return to scale effect.
The aggregate cost structure of the Santiago Chilee) urban bus transport industry is studied for the presence of economies of scale, return to scale and technical efficiency.
Constant return to scale.
Constant return to scale technical efficiency.
Variable return to scale technical efficiency.
It is proved mathematically that cost minimization can be achieved at increasing return to scale, whereas profit maximization can be attained at decreasing return to scale.
Although our model is restricted to input-oriented model and constant return to scale, one can easily generalize it to output-oriented model and variable return to scale.
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