Question

Question 3

A situation where the level of output scale and average costs are all rising is called

Answer 1

Answer: Decreasing return to scale

Step-by-step explanation:

Decreasing return to scale is a situation where the level of output, scale and average costs are all rising.

Decreasing return to scale happens when there's a rise in inputs that are involved in production process such as labour and capital which brings about a increase in output as well even though it's lesser.