Returns to scale is a concept that operates
A)only in the short run.
B)only in the long run.
C)in both the long run and the short run.
D)in either the long run or the short run depending on the industry of the firm.

Question

Quizplus · Accepted Answer

Returns to scale is a concept that operates in the long run because it involves changing all inputs proportionally, which is only feasible over the long term when all factors of production can be varied.

Returns to Scale Is a Concept That Operates