If your firm has constant returns to scale, what would happen to your firm's output if you doubled all your inputs?
A) It would not change.
B) It would increase, but by less than double.
C) It would double.
D) It would more than double.

Question

Quizplus · Accepted Answer

A firm with constant returns to scale means that doubling all inputs will result in an exact doubling of output. Therefore, the answer is C) It would double.

If Your Firm Has Constant Returns to Scale, What Would