Q1586
Consider the following statements- 1. The increasing returns to scale imply that the marginal product of a variable factor will always increase. 2. The constant returns to scale imply that the marginal product of a variable factor will always diminish 3. Managerial diseconomies constitute an important cause of decreasing returns to scale Which of these statements is/are correct?
A.
1, 2 and 3
B.
1 and 3
AnswerC.
2 only
D.
2 and 3
Answer: Option B
Solution
Answer: Option B
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