Respuesta :

In microeconomics, the term diseconomies of scale is synonymous with decreasing returns of scale.

What does economics mean by declining returns to scale?

If the manufacturing process becomes less successful as production increases, such as when a company grows too big to be properly controlled as a single unit, decreasing returns to scale occur.

When the scale returns are declining?

  • When the proportion of output is lower than the expected increased input during the production process, a declining returns to scale occurs.
  • Declining returns to scale, for instance, occur when input is increased three times but output is decreased two times.

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