Question 21 of 22 Map sapling learning Which of the followin

Question 21 of 22 Map sapling learning Which of the following statements describes an aspect of economies of scale, constant returns to scale, and diseconomies of scale? Drag and drop the statements into the appropriate bin. Economies of Scale Constant Returns to Scale Diseconomies of Scale Also known as A 50% increase in inputs results A 50% increase in inputs results in a 50% increase in outputs n 50% increase in outputs ncreasing returns to scale Also known as Increasing outputs results Increasing outputs results decreasing returns to scale in a lower average cost in no change to average cost increasing outputs results A50% increase in inputs results in higher average costs in 50% increase in outputs

Solution

Constant return to scale:
1> Also known as increasing returns to scale.
2> Also known as decreasing returns to scale.

Constant Returns to Scale
1>A 50% increase in inputs results in > 50% increase in outputs
2> A 50% increase in inputs results in < 50% increase outputs
Economies of Scale:
1>Increasing outputs results ina lower average cost.
2> Increasing outputs results in higher average costs.
3> Increasing outputs results in no change to average cost.