If you double all of the inputs of a production process but one and still observe output increasing by more than 100%, then you can be sure that the process displays increasing returns to scale.

Question

Quizplus · Accepted Answer

Increasing returns to scale occur when the output increases by a larger proportion than the increase in inputs, which is exactly what is described by doubling all but one input and observing more than a 100% increase in output.

If You Double All of the Inputs of a Production