When an increase in all inputs leads to a more-than-proportional increase in the output, we have .

constant returns

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economies of scale

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diseconomies of scale

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negative returns

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Solution

The correct option is B economies of scale
This phenomenon is called increasing returns to scale or economies of scale- when an increase in all inputs leads to a more-than-proportional increase in the output.

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Increasing returns to scale (IRS) holds when a proportional increase in all inputs results in an increase in output by more than the proportion.

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Q. ________ holds when a proportional increase in all inputs results in an increase in output by less than the proportion.

Q. If the increase in output is less than the increase in inputs, we have returns.

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When an increase in all inputs leads to a more-than-proportional increase in the output, we have .

The correct option is B economies of scaleThis phenomenon is called increasing returns to scale or economies of scale- when an increase in all inputs leads to a more-than-proportional increase in the output.

The correct option is B economies of scale
This phenomenon is called increasing returns to scale or economies of scale- when an increase in all inputs leads to a more-than-proportional increase in the output.