A production function exhibits decreasing returns to scale when _____ increases less than proportionately to input use.
A)cost per unit
B)average product
C)marginal product
D)total product

Question

Quizplus · Accepted Answer

Decreasing returns to scale occur when the total product increases less than proportionately to an increase in inputs, indicating that the output per unit of input is falling.

A Production Function Exhibits Decreasing Returns to Scale When _____