In the name of ALLAH, the most beneficient, the most merciful

Economics (ECO401)

Question (select most suitable option)

  Ali initially started a small day care centre with only 10 children and one staff member. But he found that the cost per child is very high. He wants to expand the centre. Which of the following will happen when Ali expands the centre?
Economies of scale
Diseconomies of scale
Increasing returns to the labor inputs
Decreasing returns to the labor inputs