Monday, September 13, 2010
Increasing Return
A business experiences increasing return when it produces proportionally more output/profit to the amount of input/resources used. Simply put, the more effort the company puts into producing its product or service, the more profit it will experience. This input output relationship should be proportionally related. Of course it is any business's goal to develop a business plan to allow for a higher increase in return/profit than with the amount of resources/input used. This type of increasing return is a sign of a successful business and is usually accomplished through some form of technology.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment