In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then __________ are said to exist.
A)economies of scale
B)constant returns to scale
C)diseconomies of scale
D)diminishing marginal returns

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing the inputs leads to a more than proportional increase in output, indicating more efficient production as scale increases.

In the Long Run, If Inputs Are Increased by 10