Output elasticity is the percentage change in output that results from a 1 percent increase _____.
A) in all the inputs
B) in the price of an input
C) in the price of the final product
D) in the marginal revenue product of a variable input
E) in the marginal product of an input

Question

Quizplus · Accepted Answer

Output elasticity measures the percentage change in output resulting from a 1 percent increase in all the inputs, reflecting the concept of scale elasticity in production.

Output Elasticity Is the Percentage Change in Output That Results