JAMB - Economics (1978 - No. 10)
If a company doubles all its inputs and discovers that its output is more than doubles, we can say that the company is experiencing
Increasing Marginal utility
Diseconomies of scale
Increasing costs
Constant returns to scale
Increasing returns to scale
설명
A company is said to be experiencing increasing returns to scale when the output increases by a larger proportion than the increase in inputs during the production process.
For example, if the input is increased by 3 times, but output increases by 3.75 times, then the firm or economy has experienced an increasing returns to scale.