Increasing returns to scale refers to
A) more total factor productivity leading to greater aggregate output.
B) lower real interest rates leading to greater aggregate output.
C) output doubles as all inputs double.
D) output more than doubles as all inputs double.
E) marginal product of labour diminishes when quantity of capital increases.

Question

Quizplus · Accepted Answer

The Answer of Increasing returns to scale refers to
A) more total factor productivity leading to greater aggregate output.
B) lower real interest rates leading to greater aggregate output.
C) output doubles as all inputs double.
D) output more than doubles as all inputs double.
E) marginal product of labour diminishes when quantity of capital increases.

Increasing Returns to Scale Refers to