Question

Question No. 28
Production is moving towards a point of saturation due to limits of economies of scale. This leads
Answer
A. Law of Increasing returns to scale
C.O Law of Decreasing returns to scale
B.O Law of Constant returns to scale
D.O All laws of returns to scale​

Answer 1

Explanation:

• A constant returns to scale is when an increase in input results in a proportional increase in output. Increasing returns to scale is when the output increases in a greater proportion than the increase in input. ... If the same manufacturer ends up doubling its total output, then it has achieved constant returns to scale.