Which of the following is not one of the ways in which technological progress grows as a result of an externality?
A) technology grows through the process of investment.
B) technology grows through increasing returns to scale.
C) technology grows through the process of international trade.
D) technology grows through decreasing returns to scale.

Question

Quizplus · Accepted Answer

Decreasing returns to scale can actually hinder technological progress as the cost per unit increases with increased production. Therefore, it is not a way in which technological progress grows as a result of an externality.

Which of the Following Is Not One of the Ways