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WAEC Economics 2019 Question 17

Question 17

Theory of Production

When an increase in inputs leads to a more than proportionate increase in output, there is

  1. A.decreasing returns to scale.
  2. B.increase in marginal product.
  3. C.increasing returns to scale.
  4. D.constant returns to scale.
Show the answer and explanation

Answer: C (increasing returns to scale.)

Explanation

Output rising faster than inputs is increasing returns to scale.