(Answered) Which of these production functions has decreasing returns to scale?Which of these production…

➤ Why do decreasing returns to scale matter for long-run costs and firm size?
Decreasing returns imply output rises less than proportionally with inputs, so average cost tends to increase as a firm expands. Firms face rising long-run average cost curves, which limits optimal firm size and encourages many smaller firms rather than a single giant producer.