Answered: 14. When isoquants get progressively…

14. When isoquants get progressively closer together there is a. increasing returns to scale b. constant returns to scale c. decreasing returns to scale d. not enough information to determine

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 28RQ: What shape of a long-run average cost curve illustrates economies of scale, constant returns to...

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

14. When isoquants get progressively closer together there is
a. increasing returns to scale
b. constant returns to scale
c. decreasing returns to scale
d. not enough information to determine

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