Which of the following will NOT cause increasing returns to scale
And declining average costs?
A)focusing on a single product line and specializing
B)exporting goods to other countries
C)selling more in their home market
D)hiring more workers at the existing plant

Question

Quizplus · Accepted Answer

Hiring more workers at the existing plant without changing other factors may lead to diminishing returns if the plant's capacity is reached, thus not contributing to increasing returns to scale or declining average costs.

Which of the Following Will NOT Cause Increasing Returns to Scale