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Consider the following statements- 1 The increasing returns to scale imply...

This question belongs to Commerce Economics
Economics
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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?

Answer & Solution
Correct Answer: Option B
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