-The table in the above figure shows the levels of output resulting from different levels of inputs.Which of the following conclusions can be drawn from this information?
A) Increasing returns to scale exist between 100 and 200 units of output.
B) Constant returns to scale exist throughout all levels of production.
C) Labor is subject to diminishing marginal productivity in the short run.
D) No firm conclusions can be drawn.

Question

-The table in the above figure shows the levels of output resulting from different levels of inputs.Which of the following conclusions can be drawn from this information?
A) Increasing returns to scale exist between 100 and 200 units of output. 
B) Constant returns to scale exist throughout all levels of production. 
C) Labor is subject to diminishing marginal productivity in the short run. 
D) No firm conclusions can be drawn.

Quizplus · Accepted Answer

Increasing returns to scale exist between 100 and 200 units of output because the output increases by a greater percentage than the input.

-The Table in the Above Figure Shows the Levels of Output