Constant returns to scale result when:
A)making a product involves repeating exactly the same tasks every time the item is made
B)a business uses exactly the same total amount of inputs
C)output increases by a greater percentage than an increase in inputs
D)specialized machinery is used in production
E)output increases by a smaller percentage than an increase in inputs

Question

Quizplus · Accepted Answer

Constant returns to scale occur when increasing the amount of inputs leads to a proportional increase in output, which aligns with repeating the same tasks for each unit produced.

Constant Returns to Scale Result When