Increasing returns to scale suggests that ____________

A A firm can make a profit by reducing output
B A firm can make more profit by increasing output
C As the producer reduces the quantity of raw materials used, the marginal product will double
D As the producer increases the quantity of raw materials used, the marginal product will fall

Correct Answer: Option B

Explanation:
Increasing returns to scale is when the output increases in a greater proportion than the increase in input.