If your production technology exhibits constant returns to scale,and you increase all inputs by 20%,what can you expect to occur to your output level?

Question

Quizplus · Accepted Answer

If the production technology exhibits constant returns to scale, then increasing all inputs by the same percentage will result in an equal increase in output. Therefore, if all inputs are increased by 20%, output is expected to increase by the same percentage, which is 20%.

If Your Production Technology Exhibits Constant Returns to Scale,and You