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3 April, 17:03

Decreasing returns to scale may occur as increasing the amount of inputs used Select one:

a. increases specialization.

b. always increases the amount of output produced.

c. may cause coordination difficulties.

d. increases efficiency.

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  1. 3 April, 19:14
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    c. may cause coordination difficulties

    Explanation:

    Decreasing returns to scale means output increases less than proportionately to the increase of inputs (less returns as scale increases).

    (a), (b), (d) lead to more efficiency as scale increases = > increasing returns to scale

    (d) coordication difficulties make production less efficient, where less output can be made as more inputs are used = > decreasing returns to scale
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