When production is subject to increasing returns to scale profit will be positive.

Name: When production is subject to increasing returns to scale profit will be positive.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Increasing returns to scale refer to a situation where output increases by a larger proportion than the increase in inputs, which does not guarantee positive profit since profit also depends on costs, prices, and market conditions.

When Production Is Subject to Increasing Returns to Scale Profit