Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economic Consequences Of The Peace

Authors: John Maynard Keynes

1st Edition

1420905856, 9781420905854

More Books

Students also viewed these Economics questions

Question

=+ What are the subjects?

Answered: 1 week ago

Question

13. Give four examples of psychological Maginot lines.

Answered: 1 week ago