In microeconomics, the term _____________________ is synonymous with economies of scale.
A) diminishing marginal returns
B) increasing returns to scale
C) decreasing returns to scale
D) constant returns to scale

Question

Quizplus · Accepted Answer

Increasing returns to scale refer to a situation where an increase in all inputs leads to a more than proportional increase in output, which is synonymous with economies of scale, meaning producing more efficiently as the size of operation grows.

In Microeconomics, the Term _____________________ Is Synonymous with Economies of Scale