Question

Why increasing, decreasing and negative returns to scale are experienced?

Answer 1

Answer:

Increasing returns to scale is when the output increases in a greater proportion than the increase in input. ... For example, if a soap manufacturer doubles its total input but gets only a 40% increase in total output, then it can be said to have experienced decreasing returns to scale.

Answer 2

Answer:

Increasing returns to scale is when the output increases in a greater proportion than the increase in input. ... For example, if a soap manufacturer doubles its total input but gets only a 40% increase in total output, then it can be said to have experienced decreasing returns to scale.