Multiple Choice
What does the term "decreasing returns to scale" mean?
A) The situation where a doubling of inputs results in output increasing by less than double.
B) The situation where a firm's output decreases in proportion to the decrease in its inputs.
C) It means that the firm is operating on the falling portion of its long run average cost curve.
D) It means that the firm is operating on the horizontal portion of its long run average cost curve.
Correct Answer:
Verified
Correct Answer:
Verified
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