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Classify each statement as related to economies of scale, constant returns to scale, or diseconomies of scales.
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A 50% increase in inputs results in a less than 50% increase in outputs.
also known as increasing returns to scale
also known as decreasing returns to scale
A 50% increase in inputs results in a 50% increase in outputs.
A 50% increase in inputs results in a greater than 50% increase in outputs.
Increasing outputs results in higher average costs.
Increasing outputs results in no change to average cost.
Increasing outputs results in a lower average cost.
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Classify each statement as related to economies of scale, constant returns to scale, or diseconomies...
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