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A.
a firm can make a profit by reducing output
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B.
a firm can make more profit by increasing output
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C.
as the producer reduces the quantity of raw materials used, the marginal product will double
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D.
as the producer increases the quantity of raw materials used, the marginal product will fall
Correct Answer: Option B
Explanation
Increasing returns to scale is when the output increases in a greater proportion than the increase in input.
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