When isoquants get progressively further apart there is
A) increasing returns to scale
B) decreasing returns to scale
C) constant returns to scale
D) not enough information to determine

Question

Quizplus · Accepted Answer

When isoquants get progressively further apart, it means that as we try to increase production, we need to increase inputs at an increasing rate. In this case, the increase in output is not proportionate to the increase in inputs, indicating decreasing returns to scale.

When Isoquants Get Progressively Further Apart There Is