What is meant by decreasing returns to scale?

What will be an ideal response?

Decreasing returns to scale implies that an increase in the firm's scale of production leads to higher average costs per unit produced.

Economics

You might also like to view...

If coffee and cream are complements, an increase in the price of coffee will cause

a. the demand for cream to increase. b. the demand for cream to fall. c. the demand for coffee to fall. d. no change in the demand for cream; only quantity demanded would be affected.

Economics

In an economy without government or trade, it must be true that:

A. savings equals investment. B. consumption equals savings plus investment. C. consumption plus savings equal investment. D. consumption plus investment equal national savings.

Economics