3358EconomicsMedium
Decrease returns to scale means that ________ as ________?
AShort run average cost rises, output rises
Blong run average cost rises, output rises
Clong run marginal cost rises, output rises
DShort run marginal cost rises, output rises
Correct answer
B. long run average cost rises, output rises
Explanation
The correct answer is long run average cost rises, output rises.