A firm whose production process exhibits constant returns to scale would find that if it doubled all of its inputs, its output would ________.
A)double
B)more than double
C)less than double
D)remain constant

Question

Quizplus · Accepted Answer

A production process is said to have constant returns to scale if, when all inputs are changed by a given proportion, output changes by that same proportion.

A Firm Whose Production Process Exhibits Constant Returns to Scale