If a firm doubles its usage of all inputs,and output also doubles,the production function is said to exhibit:
A)increasing returns to scale.
B)decreasing returns to scale.
C)constant returns to scale.
D)increasing marginal returns to a fixed factor of production.

Question

Quizplus · Accepted Answer

When the usage of all inputs is doubled and output also doubles, it means that the production function is exhibiting constant returns to scale. This implies that increasing the scale of production does not affect the productivity per unit of input, and the firm is able to maintain the same level of efficiency even when the inputs are increased proportionally.

If a Firm Doubles Its Usage of All Inputs,and Output