If bread is produced using a constant returns to scale production function, then if the:
A)number of workers is doubled, twice as much bread will be produced.
B)amount of equipment is doubled, twice as much bread will be produced.
C)amounts of equipment and workers are both doubled, twice as much bread will be produced.
D)amounts of equipment and workers are both doubled, four times as much bread will be produced.

Question

Quizplus · Accepted Answer

In a constant returns to scale production function, doubling all inputs (both equipment and workers) results in a doubling of output.

If Bread Is Produced Using a Constant Returns to Scale