When a decrease in the scale of production leads to higher average costs, the industry exhibits
A) diminishing returns.
B) increasing returns to scale.
C) decreasing returns to scale.
D) constant returns to scale.

Question

Quizplus · Accepted Answer

The Answer of When a decrease in the scale of production leads to higher average costs, the industry exhibits
A) diminishing returns.
B) increasing returns to scale.
C) decreasing returns to scale.
D) constant returns to scale.

When a Decrease in the Scale of Production Leads to Higher