Increasing returns to scale are obtained when –
A. Fixed factors begin to yield increasing marginal returns
B. Proportionate increase in output is more than the proportionat increase in inputs .
C. The total output reflects an erratic behaviour
D. None of the above.
Answer:B
Increasing returns to scale are obtained when –
A. Fixed factors begin to yield increasing marginal returns B. Proportionate increase in output is more than the proportionat increase in inputs . C. The total output reflects an erratic behaviour D. None of the above.