What do we call the phenomenon where a company doubles its inputs and more than doubles its outputs?

When a company doubles its inputs and produces more than double its outputs, this is referred to as increasing returns to scale. This phenomenon occurs when a firm experiences higher efficiency and productivity as it scales up its production. The increase in output is proportionately greater than the increase in input, which often results from several factors such as improved worker specialization, better use of technology, or more efficient processes that emerge at larger scales of production.

Increasing returns to scale can lead to lower average costs per unit as output rises, making the firm more competitive in the market. This is distinct from constant returns to scale, where doubling inputs results in a precise doubling of outputs, or diminishing returns to scale, where doubling inputs results in less than a doubling of outputs. Diseconomies of scale, on the other hand, occur when increasing the scale of production leads to rising average costs, typically due to inefficiencies that arise from managing a larger operation.