If a firm's output more than doubles when all inputs are doubled,production is said to occur under conditions of
A)increasing returns to scale.
B)constant returns to scale
C)imperfect competition.
D)decreasing returns to scale.
E)intra- industry equilibrium.

Question

Quizplus · Accepted Answer

Increasing returns to scale occur when a firm's output more than doubles as a result of doubling all inputs, indicating that the firm is becoming more efficient as it scales up production.

If a Firm's Output More Than Doubles When All Inputs