Which of the following provides the best explanation for constant returns to scale?
A) Replication of production techniques
B) Diminishing marginal product
C) Increasing marginal product
D) Constant marginal product

Question

Quizplus · Accepted Answer

Constant returns to scale occur when increasing all inputs by a certain proportion results in an increase in output by the same proportion. This is best explained by the replication of production techniques, where the same production process is duplicated, maintaining the same efficiency and output-to-input ratio.

Which of the Following Provides the Best Explanation for Constant