Increasing Returns to Scale

Multiple Choice

Increasing returns to scale

A) means that output rises proportionately less than inputs, increasing per unit cost of production in the short run.
B) means that output rises proportionately more than inputs, resulting in increasing per unit costs.
C) implies that the long- run average cost curve is shifting downward.
D) has the same meaning as increasing costs of production.
E) means that output rises proportionately more than inputs, resulting in lower per unit costs in the long run.