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When an increase in inputs leads to a more than proportionate increase in output, there ...

When an increase in inputs leads to a more than proportionate increase in output, there is _____________
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  • A Decreasing returns to scale
  • B Increase in marginal product
  • C Increasing retums to scale
  • D Constant retums to scale
Correct Answer: Option C
Explanation:
Increasing returns to scale happens when the output increases in a greater proportion than the increase in input.

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