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WAEC Economics 1996 Question 14

Question 14

Theory of Production

Decreasing returns to scale implies that if all factors of production are doubled, output will be

  1. A.more than doubled
  2. B.less than doubled
  3. C.doubled
  4. D.unchanged
  5. E.trebled
Show the answer and explanation

Answer: B (less than doubled)

Explanation

With decreasing returns to scale, output rises by a smaller proportion than the inputs.