If an increase in output is proportionately smaller than the increase in inputs, this is best described as;
(a) Decreasing returns to scale.
(b) Increasing returns to scale.
(c) Constant returns to scale.
(d) Marginal returns to scale.
Answer: (a) Decreasing returns to scale.
Economics
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The size of a corporation, as measured by stockholders' equity, depends primarily upon
A) current net revenue. B) people's expectations of future earnings. C) the amount of capital invested in the corporation. D) total sales (in dollar terms).
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