Exhibit 8-1
(a)

(b)

(c)

-Refer to Exhibit 8-1. Which graph depicts constant returns to scale?
A) (a)
B) (b)
C) (c)

Name: Exhibit 8-1 (a) (b) (c) -Refer to Exhibit 8-1. Which graph depicts constant returns to scale? A) (a) B) (b) C) (c)
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Question

Exhibit 8-1
(a)
  
(b)
  
(c)
 
-Refer to Exhibit 8-1. Which graph depicts constant returns to scale?
A) (a) 
B) (b) 
C) (c)

Quizplus · Accepted Answer

In graph (a), when the input is doubled, the output also doubles, indicating constant returns to scale. In graphs (b) and (c), the increase in output is less than double when the input is doubled, indicating decreasing returns to scale.