What Is Meant by the Term "Increasing Returns to Scale

question 60

Multiple Choice

What is meant by the term "increasing returns to scale"?

• A)output rises proportionately less than inputs,increasing per unit cost of production in the short run
• B)output rises proportionately more than inputs,resulting in increasing per unit costs
• C)output rises proportionately more than inputs,resulting in lower per unit costs in the long run
• D)it has the same meaning as increasing costs of production
• E)it implies that the long-run average cost curve is shifting downward

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Definitions:

Rich Countries

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Prosperous

Characterized by success, wealth, or good fortune, often related to economic growth and stability.

Japan Colonies

Territories outside of Japan that were under Japanese imperial control, particularly during the late 19th and early 20th centuries.

History of Globalization

The historical process of increasing global interconnectivity and interdependence, marked by the exchange of goods, ideas, cultures, and people across continents.