Economics · Returns to Scale
What is the primary characteristic of diminishing returns to scale?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Total output increases at an increasing rate
- 2Total output decreases in absolute terms
- 3Total output remains constant when inputs are increased
- 4Total output increases at a decreasing rate when all inputs are increased proportionally✓
Correct answer
Total output increases at a decreasing rate when all inputs are increased proportionally
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