Final answer:
The relationship between Returns to Scale (RTS) and long-run output elasticity (ELQ) is an inverse relationship.
Step-by-step explanation:
The relationship between Returns to Scale (RTS) and long-run output elasticity (ELQ) is a) Inverse relationship.
When there is an inverse relationship between RTS and ELQ, it means that as RTS increases, ELQ decreases, and vice versa.
For example, if a firm experiences increasing RTS, it means that when all inputs are increased by a certain percentage, the firm's output will increase more than proportionately. In this case, ELQ would be greater than 1. On the other hand, if a firm experiences decreasing RTS, when all inputs are increased by a certain percentage, the firm's output will increase less than proportionately, resulting in an ELQ less than 1.