Question

Increasing returns to scale occur when a firm's

Answer 1

Answer:

Explanation:

Put simply, increasing returns to scale occur when a firm's output more than scales in comparison to its inputs. For example, a firm exhibits increasing returns to scale if its output more than doubles when all of its inputs are doubled.

Answer 2

Answer:

An increasing returns to scale occurs when the output increases by a large proportion than the increase in inputs during the production process.For example, if input is increased by 3 times, but output increases by 3.75 times, then the firm or economy has experienced an increasing returns to scale.