-In the above figure, the firm experiences constant returns to scale between output levels of
A) zero and Q1.
B) Q2 and Q3.
C) Q3 and Q4.
D) any level greater than Q4.

Question

-In the above figure, the firm experiences constant returns to scale between output levels of
A) zero and Q1. 
B) Q2 and Q3. 
C) Q3 and Q4. 
D) any level greater than Q4.

Quizplus · Accepted Answer

Constant returns to scale occur when an increase in inputs results in a proportional increase in outputs, which is depicted between Q2 and Q3 in the scenario described.

-In the Above Figure, the Firm Experiences Constant Returns to Scale