What is the primary characteristic of Decreasing Returns to Scale ?

CA Foundation · Business Economics · PYQS · September 2024
What is the primary characteristic of Decreasing Returns to Scale ?
(A) A. Total output increases at a decreasing rate
(B) B. Total output increases at an increasing rate
(C) C. Total output remains constant
(D) D. Total output decreases

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Total output increases at a decreasing rate

Topics: Theory of Production and Cost

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