Question
Explain “Returns to Scale” using numerical examples. Give reasons.
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Output (units)
|
1
|
2
|
3
|
4
|
5
|
6
|
|
Average Fixed Cost (AFC) (₹)
|
60
|
30
|
20
|
15
|
12
|
10
|
|
Marginal Cost (MC) (₹)
|
32
|
30
|
28
|
30
|
35
|
43
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