Question

major reason for decreasing returns to scale is _______​

Answer 1

Answer:

less than proportion increases output

Explanation:

Increasing returns to scale is when the output increases in a greater proportion than the increase in input. Decreasing returns to scale is when all production variables are increased by a certain percentage resulting in a less-than-proportional increase in output.

Answer 2

Answer:

Major reason for decreasing returns to scale is increase in all inputs (labour/capital) leads to a less proportional increase in output.