Increasing returns to scale refers to a situation where an, Ask an Expert

Economics

Indicate whether you agree or disagree with the following statements. Briefly describe your answer.

a. Increasing returns to scale refers to a situation where an increase in a firm's scale of production leads to higher costs per unit produced.

b. Constant returns to scale refers to a situation where an increase in a firm's scale of production has no effect on costs per unit produced.

c. Decreasing returns to scale refers to a situation where an increase in a firm's scale of production leads to lower costs per unit produced.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M959282

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