Decreasing Returns to Scale in the Long Run
Not what you're looking for?
In the long run, a firm is said to be experiencing decreasing returns to scale if a 10 percent increase in inputs results in:
an increase in output from 100 to 110.
a decrease in output from 100 to 90.
an increase in output from 100 to 105.
a decrease in output from 100 to 85.
Purchase this Solution
Solution Summary
This solution briefly examines the results of an increase in output to identify "decreasing returns to scale." This solution is 83 words.
Solution Preview
When the proportional increase in output is less than the proportional increase in input, the firm is ...
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.