Increasing returns to scale result when
A)in the long-run,an increase in inputs will lead to an increase in the average products of inputs.
B)in the long run,an increase in inputs will lead to an equivalent increase in output.
C)labor becomes more skilled.
D)All of the above

Question

Quizplus · Accepted Answer

Increasing returns to scale occur when an increase in inputs leads to a more than proportional increase in output, which often results in an increase in the average products of inputs.

Increasing Returns to Scale Result When