2 ms·
You would expect this to be true if returns to scale are concave after some point. Intuitively this makes sense, for anything, after a certain point more of it
by ls612 8y ago
You would expect this to be true if returns to scale are concave after some point. Intuitively this makes sense, for anything, after a certain point more of it becomes bad. If production returns to capital are sub-linear at very large (macroeconomic) scales then it would be surprising to see g >= r for any long period of time.