Q. Specify whether you agree or disagree with the subsequent statements. In brief explain your answer.
a. Increasing returns to scale refers to a situation where an increase in a firm's scale of production leads to higher cost every unit produced.
b. Constant returns to scale refers to a situation where an increase in a firm's scale of production has no effect on costs every unit produced.
c. Decreasing returns to scale refers to a situation where an increase in a firm's scale of production leads to lower costs every unit produced.