Exhibit 22-5

-Refer to Exhibit 22-5.Constant returns to scale are present between

Question

Exhibit 22-5
 
-Refer to Exhibit 22-5.Constant returns to scale are present between

Quizplus · Accepted Answer

Constant returns to scale occur when a proportional increase in all inputs leads to the same increase in output. In the exhibit, the distance between points B and C represents a proportional increase in all inputs and results in the same increase in output, indicating constant returns to scale. Therefore, choice C is the best option.

Exhibit 22-5 -Refer to Exhibit 22-5.Constant Returns to Scale Are Present Between