-The above figure shows the isoquants for producing steel.Increasing returns to scale are
A) present when producing less than 10,000 tons.
B) present when producing less than 20,000 tons.
C) present when producing less than 30,000 tons.
D) never present.

Question

-The above figure shows the isoquants for producing steel.Increasing returns to scale are
A) present when producing less than 10,000 tons. 
B) present when producing less than 20,000 tons. 
C) present when producing less than 30,000 tons. 
D) never present.

Quizplus · Accepted Answer

Increasing returns to scale are present when producing less than 10,000 tons because the isoquants are getting closer together as output increases, indicating that less of each input is needed to produce an additional unit of output.

-The Above Figure Shows the Isoquants for Producing Steel