In a market economy, if you double the inputs for a new branch of your textile company and produce double the output which term best describes your situation.
A)constant cost.
B)increasing cost diminishing returns.
C)decreasing cost diminishing returns.
D)both B and C.
E)none of the above.

Question

Quizplus · Accepted Answer

Doubling the inputs and getting double the output indicates constant returns to scale, meaning the company's production efficiency remains unchanged as it scales up. This is described by the term "constant cost."

In a Market Economy, If You Double the Inputs for a New