Diminishing returns are due to _______ and increasing returns are due to ______.

CA Foundation · Business Economics · MTP · September 2024
Diminishing returns are due to _______ and increasing returns are due to ______.
(A) A. Internal diseconomies, Internal economies
(B) B. Internal economies, Internal diseconomies
(C) C. External diseconomies, Internal economies
(D) D. Internal diseconomies, external economies

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Internal diseconomies, Internal economies

Topics: Theory of Production and Cost

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