Difference in diminishing returns-decreasing return to scale

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What is the difference between diminishing returns and decreasing returns to scale? Why are cost curves U-shaped in the short run?

Given that an expanding company is a sign of increasing returns to scale, while a company that is downsizing (laying off workers and closing branches, offices etc.) is a sign of decreasing returns to scale, what kind of returns to scale are possible/observed in your organization (the one your work or where you would like to work)? Why?

Reference no: EM131001889

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