Question

If decreasing returns to scale are present then if all inputs are increased by 10% then :
(a) output will also decrease by 10%
(b) output will increase by 10%
(c) output will increase by less than 10%
(d) output will increase by more than 10%

Answer 1

Explanation:

If decreasing returns to scale are present then if all inputs are increased by 10% then :

(a) output will also decrease by 10%✔️

(b) output will increase by 10%

(c) output will increase by less than 10%

(d) output will increase by more than 10%

Answer 2

Option A)

output will also decrease by 10%

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