Economics · Theory of Production

Suppose a firm increases all inputs by 50% and its output increases by 75%. What type of return to scale is this?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Constant Returns to Scale
2Increasing Returns to Scale✓
3Decreasing Returns to Scale
4Negative Returns

Correct answer

Increasing Returns to Scale

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Suppose a firm increases all inputs by 50% and its output increases by 75%. What type of return to scale is this?

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Suppose a firm increases all inputs by 50% and its output increases by 75%. What type of return to scale is this?

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