-Refer to Figure 7.6.Graph A represents
A) Increasing returns to scale
B) Decreasing returns to scale
C) Constant returns to scale
D) Diminishing marginal returns

Name: -Refer to Figure 7.6.Graph A represents A) Increasing returns to scale B) Decreasing returns to scale C) Constant returns to scale D) Diminishing marginal returns
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Question

-Refer to Figure 7.6.Graph A represents
A) Increasing returns to scale 
B) Decreasing returns to scale 
C) Constant returns to scale 
D) Diminishing marginal returns

Quizplus · Accepted Answer

Graph A shows that as the quantity of labor increases, the output increases at an increasing rate. This is the definition of increasing returns to scale.

-Refer to Figure 7.6.Graph a Represents