Economics · Theory of Production
Decreasing returns to scale occurs when _______
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1an increase in all inputs (labour/capital) leads to a more than proportional increase in output
- 2an increase in all inputs (labour/capital) leads to a less than proportional increase in output✓
- 3a decrease i n all inputs (labour/capital) leads to a more than proportional increase in output
- 4a decrease in all inputs (labour/capital) leads to a less than proportional increase in output
Correct answer
an increase in all inputs (labour/capital) leads to a less than proportional increase in output
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