Constant returns to scale occur when a doubling of all inputs
A) doubles the price of outputs.
B) more than doubles output.
C) less than doubles the price of the inputs.
D) exactly doubles output.
E) less than doubles output.

Question

Quizplus · Accepted Answer

Constant returns to scale means that when all inputs are doubled, the output is also exactly doubled. Therefore, the best answer is D.

Constant Returns to Scale Occur When a Doubling of All