Business, 01.03.2021 05:00 dlsmith68

Classify each statement as related to economies of scale, constant returns to scale, or diseconomies of scales. Answer Bank

A 50% increase in inputs results in a less than 50% increase in outputs.

also known as increasing returns to scale

also known as decreasing returns to scale

A 50% increase in inputs results in a 50% increase in outputs.

A 50% increase in inputs results in a greater than 50% increase in outputs.

Increasing outputs results in higher average costs.

Increasing outputs results in no change to average cost.

Increasing outputs results in a lower average cost.

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Classify each statement as related to economies of scale, constant returns to scale, or diseconomies...

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