If an industry\'s technology is characterized by increasing returns to scale, th

Question

If an industry's technology is characterized by increasing returns to scale, then: O A firm that doubles its inputs will find that its output will less than double, increasing its average total costs. A firm that doubles its inputs will find that its output will double, keeping average total costs constant. O A firm that doubles its inputs will find that its output will more than double, increasing its average fixedl costs O A firm that doubles its output will find its inputs will more than double, reducing its average total costs 0 A firm that doubles its inputs will find that its output will more than double, reducing its average total costs. Moving to the next question prevents changes to this answer

Explanation / Answer

When a firm is increasing economies of scale then output rises more than in proportion to rise in input.So if a firm doubles it's inputs,its output more than doubles and this causes the average cost to fall.

Answer-last option.

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