Quick multiple choice ques PLEASE HELP

If the long run average costs of production for a firm fall as output rises, then we have

a) Constant returns to scale
b) Increasing returns to scale
c) Decreasing returns to scale
d) Increasing average fixed costs of production
e) Lower total costs of production

Anyone know the answer? Thanks

Which ones would you rule out immediately and why?

it's B

That's what i was thinking... i was confused because it sounds like economies of scale is the answer but increasing returns to scale is different

Cheers dude!

I was also stuck on this ques if you could help

A company producing tea can make 1kg for an average variable cost of £1.20. It must pay fixed costs per month of £2,000 and the company sells 2,500kg of tea per month. If the firm decides to add a mark-up of 20% what price should it charge per 1kg of tea?a) £3.50b) £5.50c) £4.20d) £8.80e) £2.40

With these types of question, it is helpful to think clearly about all the suggested answers. Do you think that d or e could be true? (I agree that a and c are not correct).

Cheers dude!

I was also stuck on this ques if you could help

A company producing tea can make 1kg for an average variable cost of £1.20. It must pay fixed costs per month of £2,000 and the company sells 2,500kg of tea per month. If the firm decides to add a mark-up of 20% what price should it charge per 1kg of tea?a) £3.50b) £5.50c) £4.20d) £8.80e) £2.40