Increasing returns to scale are obtained when —

CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
Increasing returns to scale are obtained when —
(A) Fixed factors begin to yield increasing marginal returns
(B) Proportionate increase in output is more than the proportionate increase in inputs.
(C) The total output reflects an erratic behaviour
(D) None of the above.

Answer & Explanation:

Correct Answer: Option (B)

Correct answer: (B) Proportionate increase in output is more than the proportionate increase in inputs..

Topics: Business Economics

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