Start learning →

Which situation describes increasing returns to scale?

AOutput rises less than inputs
BOutput stays unchanged
COutput rises more than inputs
DInputs fall as output rises
Answer & Solution
Correct answer: C. Output rises more than inputs
Output growing by more than the proportional change in all inputs is increasing returns to scale.
Practise this question with Quill — CA Foundation →

Keep practising Theory of Production

Browse all Theory of Production questions for CA Foundation, or explore more Business Economics topics.

Start a Theory of Production lesson →
Related questions