-The above figure shows the isoquants for producing steel.When producing between 10,000 and 20,000 tons there are
A) increasing returns to scale.
B) decreasing returns to scale.
C) constant returns to scale.
D) economies of scale.

Question

-The above figure shows the isoquants for producing steel.When producing between 10,000 and 20,000 tons there are
A) increasing returns to scale. 
B) decreasing returns to scale. 
C) constant returns to scale. 
D) economies of scale.

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, which is typically represented by equidistant isoquants.

-The Above Figure Shows the Isoquants for Producing Steel