87) Narrowing distance between successive isoquants denotes-
a) Increasing returns to scale
b b) Decreasing returns to scale
c) Constant returns to scale
d) Increasing returns
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Answer:
a increasing return to scale
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Narrowing distance between successive isoquants
Explanation
a)increasing return to scale.
- Metioning to the all the effects after change in scale of output.
- Production function is homogeneous.
- Specialisation and dividing the labour.
- Due to external economies.
- Work divided into small tasks.
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