Question

Increasing returns to scale can be explained in terms of

Answer 1

Answer:

Increasing returns to scale

Explanation:

increasing returns to scale can be explained in terms of external and internal economies. increasing returns to scale is while output produced is especially in large share than the inputs used. Economies of scale confer with value blessings which can be derived from efficiency in production.

increasing returns to scale is while the output will increase in a extra percentage than the increase in input. reducing returns to scale is whilst all production variables are extended through a positive percent ensuing in a much less-than-proportional increase in output.

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Answer 2

Increasing returns to scale can be explained in terms of external and internal economies.

• Increased returns to scale are present when the output generated is comparatively high in relation to the inputs consumed.
• Cost savings that result from production efficiency are referred to as economies of scale.
• External economies are economies of scale attained through outside modifications to the market that lower the price.
• Internal economies are scale economies that a business or organization achieves internally.
• Increasing returns to scale are made possible by both internal and external economies.

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