Which of the following equations best represents the concept of constant returns to scale?

Question

Quizplus · Accepted Answer

Constant returns to scale means that if you increase all inputs by a certain proportion (in this case, by a factor of 3), the output also increases by that same factor. This is represented by option A, where increasing both K and L by a factor of 3 results in an increase in output (Y) by a factor of 3. The other options do not represent constant returns to scale as the output does not increase proportionally to an increase in inputs.

Which of the Following Equations Best Represents the Concept of Constant