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The phrase returns to scale is a way of describing the change in output that is produced as a result of a relative change in

  1. The phrase "returns to scale" is a way of describing the change in output that is produced as a result of a relative change in inputs used.

Which of the following statements is true?

A. If inputs are doubled and output doubles, this is called increasing returns to scale.

B. If inputs are doubled and output doubles, this is called constant returns to scale.

C. If inputs are tripled and output doubles, this is called increasing returns to scale.

D. If inputs are doubled and output doubles, this is called decreasing returns to scale.

E. If inputs are tripled and output doubles, this is called constant returns to scale.

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