The production function exhibits increasing returns to scale when a firm can increase production by more than a proportionate increase in _____.
A)costs
B)one input
C)all inputs
D)a fixed input

Question

Quizplus · Accepted Answer

Increasing returns to scale occur when all inputs are increased proportionately, resulting in a more than proportionate increase in output. Therefore, choice C is the best answer as it aligns with the definition of increasing returns to scale.

The Production Function Exhibits Increasing Returns to Scale When a Firm