You sell fruit smoothies. One day you double the time you spend and double all your inputs, and make twice as many smoothies. Your smoothie production function has
A)decreasing returns to scale.
B)zero returns to scale.
C)constant returns to scale.
D)increasing returns to scale.

Question

Quizplus · Accepted Answer

When the time and inputs are doubled, the smoothie production is also doubled, indicating constant returns to scale. There is no increase or decrease in the proportion of output to the inputs used. Therefore, C is the correct choice.

You Sell Fruit Smoothies