With ______ returns to scale,production is most efficient if there is ______.
A) decreasing; a single producer
B) increasing; a large number of producers
C) constant; a single producer
D) increasing; a single producer

Question

Quizplus · Accepted Answer

With increasing returns to scale, production becomes more efficient as the scale of production increases. This often leads to situations where a single producer (or a few large producers) can produce goods or services at a lower cost than a larger number of smaller producers, due to economies of scale.

With ______ Returns to Scale,production Is Most Efficient If There