Decreasing returns to scale may occur as increasing the amount of ...

[maychende]

Decreasing returns to scale may occur as increasing the amount of inputs used
 
  A) increases specialization.
  B) always increases the amount of output produced.
  C) may cause coordination difficulties.
  D) increases efficiency.

Question 2

Returns to scale refers to the change in output when
 
  A) all inputs increase proportionately.
  B) labor increases holding all other inputs fixed.
  C) capital equipment is doubled.
  D) specialization improves.

[mathjasmine]

Answer to Question 1

C

Answer to Question 2

A