If the positive externalities associated with learning by doing are sufficiently great, production will be characterized by:
A)decreasing returns to scale.
B)increasing marginal productivity.
C)increasing returns to scale.
D)diminishing marginal productivity.

Question

Quizplus · Accepted Answer

Positive externalities from learning by doing can lead to increasing returns to scale, as the accumulated knowledge and skills enhance productivity, allowing output to increase more than proportionally with inputs.

If the Positive Externalities Associated with Learning by Doing Are