When an increase in inputs leads to a more than proportionate increase in output, there...
ECONOMICS
WAEC 2019
When an increase in inputs leads to a more than proportionate increase in output, there is
- A. decreasing returns to scale
- B. Increase in marginal product
- C. increasing retums to scale
- D. constant retums to scale
Correct Answer: C. increasing retums to scale
Explanation
Increasing returns to scale happens when the output increases in a greater proportion than the increase in input.
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