Which of the following paired concepts are equivalent to each other?
A) increasing costs; economies of scale
B) increasing returns; diseconomies of scale
C) increasing returns; decreasing costs
D) constant costs; economies of scale
E) increasing returns; increasing costs

Question

Quizplus · Accepted Answer

Increasing returns and decreasing costs are equivalent concepts, as they both refer to the situation where the average cost of producing a good or service decreases as output increases. This is often due to the ability to spread fixed costs over more units of production, or to take advantage of efficiencies in the production process.

Which of the Following Paired Concepts Are Equivalent to Each