ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If the % change in output > the % change in input, the firm is experiencing
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decreasing returns
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constant returns
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increasing returns
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diminishing returns
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Explanation:
Detailed explanation-1: -If a firm is experiencing increasing returns to scale, then a doubling of output will require more than a doubling of all inputs. Decreasing returns to scale arise because of increased specialization and division of labor at higher levels of output.
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