AQA A-Level Economics 2025/6

Economics • A-Level

Question 1 of 114

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In the short run, a firm experiences increasing returns to scale when it:

Hint: Think about what happens when you double or triple all factors of production and how their outputs change relative to each other.

decreases all inputs proportionally and output decreases by less than the proportional decrease of inputs expands all inputs proportionally and output increases by more than the proportional increase of inputs decreases one input while holding others constant and finds that output decreases at an increasing rate increases one input while holding others constant and finds that output increases at a decreasing rate

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