-According to the table above, paper product production exhibits
A)decreasing returns to scale.
B)constant returns to scale.
C)increasing returns to scale.
D)varying returns to scale.

Question

-According to the table above, paper product production exhibits
A)decreasing returns to scale. 
B)constant returns to scale. 
C)increasing returns to scale. 
D)varying returns to scale.

Quizplus · Accepted Answer

Increasing returns to scale occur when an increase in inputs leads to a proportionally larger increase in output. The table likely shows that as inputs increase, the output of paper products increases at a greater rate, indicating increasing returns to scale.

-According to the Table Above, Paper Product Production Exhibits