Decreasing returns to scale occurs when_______
1
an increase in all inputs (labour/capital) leads to a more than proportional increase in output
2
an increase in all inputs (labour/capital) leads to a less than proportional increase in output
3
a decrease in all inputs (labour/capital) leads to a more than proportional increase in output
4
a decrease in all inputs (labour/capital) leads to a less than proportional increase in output