An economy's production function has the constantreturnstoscale property. If the economy's labor force doubled
And all other inputs stayed the same, then real GDP would
A) stay the same.
B) increase by exactly 50 percent.
C) increase by exactly 100 percent.
D) increase, but not necessarily by either 50 percent or 100 percent.

Question

An economy's production function has the constant­returns­to­scale property. If the economy's labor force doubled
And all other inputs stayed the same, then real GDP would
A) stay the same.
B) increase by exactly 50 percent.
C) increase by exactly 100 percent.
D) increase, but not necessarily by either 50 percent or 100 percent.

Quizplus · Accepted Answer

The Answer of An economy's production function has the constant­returns­to­scale property. If the economy's labor force doubled
And all other inputs stayed the same, then real GDP would
A) stay the same.
B) increase by exactly 50 percent.
C) increase by exactly 100 percent.
D) increase, but not necessarily by either 50 percent or 100 percent.

An Economy's Production Function Has the Constant­returns­to­scale Property

An Economy's Production Function Has the Constantreturnstoscale Property