Jamal owns a coffee roasting company.He buys raw coffee beans,roasts them,grinds them,and sells them to stores.He recently moved into a larger factory so that he can sell coffee to more stores.How would Jamal know if he is experiencing constant returns to scale from increasing the size of his factory?

Question

Quizplus · Accepted Answer

Constant returns to scale occur when increasing the scale of production leads to a proportional increase in output, resulting in the long-run average cost per unit of output remaining unchanged.

Jamal Owns a Coffee Roasting Company