Question

Increasing returns to scale in production means:____.A. more thanâ 10% as much of all inputs are required to increase outputâ 10%. B. isoquants must be linear. C. less than twice as much of all inputs are required to double output. D. more than twice as much of only one input is required to double output.

Answer 1

Answer:

C. less than twice as much of all inputs are required to double output.

Explanation:

If there is an increase return to scale in the production so this represent that when the output is increased and it is more in the proportion so there is an increase in inputs

So that means it should be lower than the twice and maximum of all input that are needed to double output

Therefore the option c is correct