The production function f(x, y)= x +y has constant returns to scale.

Name: The production function f(x, y)= x +y has constant returns to scale.
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Question

Quizplus · Accepted Answer

A production function has constant returns to scale if multiplying all inputs by a constant factor results in the output being multiplied by the same constant factor. This is true for the given production function f(x, y) = 10 x S1 + 10 y, as doubling both x and y would result in the output being doubled as well. Therefore, the answer is A.

The Production Function F(x, Y)= X +Y Has Constant Returns