why isoquant come closer in increating return to scale?

Could you please restate this so it's more understandable? Plain English might help!

Sra

This site may help you.

http://en.wikipedia.org/wiki/Isoquant

Isoquants come closer in increasing returns to scale due to the nature of their shape and the relationship between inputs and output in production.

To understand this, let's start by defining what an isoquant is. An isoquant is a curve that represents all possible combinations of inputs that yield the same level of output. In other words, it shows all the different combinations of inputs (such as labor and capital) that can result in producing a given level of output.

Now, returns to scale refer to the effect of increasing the scale of production (i.e., increasing the quantities of all inputs proportionally) on the level of output. There are three types of returns to scale: increasing returns to scale, decreasing returns to scale, and constant returns to scale.

When a production process exhibits increasing returns to scale, this means that as all inputs are increased in proportion, output increases at a higher rate. In other words, a proportional increase in inputs leads to a more than proportional increase in output. It implies that economies of scale are present, allowing for greater efficiency and cost savings as production expands.

So, now let's get back to the question of why isoquants come closer in increasing returns to scale. The reason behind this is that in the case of increasing returns to scale, the isoquants become closer to each other. This means that the same level of output can be achieved using fewer inputs.

This can be explained by the fact that when there are increasing returns to scale, the production process benefits from economies of scale. This enables the firm to take advantage of various cost-saving measures, such as bulk purchasing, specialization of labor, or more efficient utilization of capital. As a result, the firm can achieve higher levels of output with relatively less investment in inputs.

In summary, isoquants come closer in increasing returns to scale because the production process becomes more efficient and cost-effective as the scale of production expands, allowing for higher output levels with fewer inputs.