What does decreasing returns to scale imply about the relationship between output and costs?

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Marginal cost in the short run increases as output expandsMarginal cost in the long run increases as output growsAverage cost in the short run increases with higher outputAverage cost in the long run increases as production increases

Explanation

Decreasing returns to scale occur when increasing the scale of production leads to a higher long-run average cost. This means that as output increases, the long-run average cost rises, indicating less efficient production at larger scales.