If there are increasing returns to scale, then costs per unit of output decrease as you move downward and to the right along an isocost line.

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Quizplus · Accepted Answer

Increasing returns to scale refer to a situation where output increases by a larger proportion than the increase in inputs, affecting the shape of the production function rather than the position along an isocost line. An isocost line represents combinations of inputs that cost the same amount; moving along it changes the input mix but not the total cost or scale of operation directly.

If There Are Increasing Returns to Scale, Then Costs Per