Returns to scale describes the long-run relationship between:

Name: Returns to scale describes the long-run relationship between:
Brand: Quizplus
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Quizplus · Accepted Answer

Returns to scale describes the long-run relationship between the quantity of output and the average total cost. This is because returns to scale refers to the change in output that results from a proportional change in all inputs in the long run. As such, it is a measure of the relationship between the quantity of output and the costs involved in producing that output.

Returns to Scale Describes the Long-Run Relationship Between