If a production technology exhibits decreasing returns to scale,which of the following will occur when all inputs are increased by 10%?

Name: If a production technology exhibits decreasing returns to scale,which of the following will occur when all inputs are increased by 10%?
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

If a production technology has decreasing returns to scale, increasing all inputs by the same percentage will result in a less than proportional increase in output. Therefore, the output will increase by less than 10%.

If a Production Technology Exhibits Decreasing Returns to Scale,which of the Following