Which of the following paired concepts are equivalent to each other?
A)increasing returns; decreasing costs
B)increasing returns; diseconomies of scale
C)increasing returns; increasing costs
D)constant costs; economies of scale
E)increasing costs; economies of scale

Question

Quizplus · Accepted Answer

Increasing returns and decreasing costs are equivalent because they both refer to a situation where the increase in output results in a decrease in average total cost. This occurs when there are economies of scale, which lead to lower costs as production increases.

Which of the Following Paired Concepts Are Equivalent to Each