Increasing returns to scale in production means:
A) more than 10% as much of all inputs are required to increase output 10%.
B) less than twice as much of all inputs are required to double output.
C) more than twice as much of only one input is required to double output.
D) isoquants must be linear.

Question

Quizplus · Accepted Answer

Increasing returns to scale in production means that as all inputs are increased, output increases at a more than proportional rate. In other words, less than twice as much of all inputs are required to double output, indicating increasing efficiency of production at larger scales.

Increasing Returns to Scale in Production Means