Which of the following is true?
A)Diseconomies of scale imply increasing returns to scale.
B)Increasing returns to scale implies diseconomies of scale.
C)Increasing returns to scale implies economies of scale.
D)Economies of scale imply increasing returns to scale.

Question

Quizplus · Accepted Answer

Increasing returns to scale implies that a firm can produce more output with less proportionate increase in inputs. This leads to lower average costs and thus economies of scale.

Which of the Following Is True