If a doubling of inputs leads to a doubling of output, the firm is said to experience decreasing returns to scale.
Correct Answer:
Verified
Q40: In the short run, by definition, at
Q41: If a firm's AVC is falling, then
Q42: If marginal cost is above average cost,
Q43: All marginal costs are variable.
Q44: A firm's average fixed cost must always
Q46: Economies of scale explain the falling part
Q47: If firm X benefits from research and
Q48: In the long run a producer should
Q49: By 'diseconomies of scale' economists mean bureaucracy.
Q50: The minimum efficient scale of operations refers
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents