-Refer to the graph above to answer this question.Between what output levels do increasing returns to scale exist? A)Q₁ and Q₂ only. B)Q₁ and Q₃ only. C)Q₁ and Q₄. D)Q₁ and Q₅. E)Q₄ and Q₅.

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Quizplus · Accepted Answer

Increasing returns to scale occur when output increases by a larger proportion than the increase in inputs, typically shown by a downward-sloping portion of the average cost curve.

-Refer to the Graph Above to Answer This Question