Asked by

Ben Derrick Garing
on Oct 25, 2024

verifed

Verified

Increasing returns to scale in production means:

A) more than 10% as much of all inputs are required to increase output 10%.
B) less than twice as much of all inputs are required to double output.
C) more than twice as much of only one input is required to double output.
D) isoquants must be linear.

Increasing Returns

A situation where an increase in the amount of inputs results in a more than proportional increase in the output, demonstrating enhanced efficiency or productivity.

Inputs

The resources used in the production process to create goods or services, including labor, raw materials, and capital.

Scale

The size or level of activity of a company or operation, or the capacity to adjust the size or level of activity.

  • Set apart the distinctions of growing, flat, and shrinking returns to scale in the context of industrial production.
verifed

Verified Answer

PS
Prabhjot SinghOct 29, 2024
Final Answer:
Get Full Answer