A situation known as _____________________ occurs when all production inputs are allowed to expand, but that expansion does not result in much of a change in the average cost of production.

Question

Quizplus · Accepted Answer

Constant returns to scale occur when increasing all inputs by a certain percentage results in an increase in output by the same percentage, leading to no change in the average cost of production.

A Situation Known as _____________________ Occurs When All Production Inputs