Constant returns to scale means that as all inputs are increased
A) total output remains constant.
B) average total cost rises.
C) average total cost rises at the same rate as do the inputs.
D) total output increases in the same proportion as do the inputs.

Question

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.

Constant Returns to Scale Means That as All Inputs Are