Examlex
Instructions: Identify the following terms.
Olmec
Diseconomies of Scale
A situation where, as a firm increases its production, the costs per unit increase.
Constant Returns to Scale
A situation in which increasing the amount of inputs results in a proportional increase in outputs.
Diseconomies of Scale
A situation in which production costs increase as a firm’s output increases, leading to decreased efficiency.
Decreasing Returns to Scale
Decreasing Returns to Scale occurs when a firm increases all inputs by a certain proportion, but the output increases by a smaller proportion, indicating reduced efficiency.
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