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Which of the following statements is true?   If inputs are doubled and output doubles, this is called increasing returns to scale.   If inputs are doubled and output doubles, this is called constant returns to scale.   If inputs are tripled and output doubles, this is called increasing returns to scale.   If inputs are doubled and output doubles, this is called decreasing returns to scale.   If inputs are tripled and output doubles, this is called constant returns to scale

Which of the following statements is true?   If inputs are doubled and output doubles, this is called increasing returns to scale.   If inputs are doubled and output doubles, this is called constant returns to scale.   If inputs are tripled and output doubles, this is called increasing returns to scale.   If inputs are doubled and output doubles, this is called decreasing returns to scale.   If inputs are tripled and output doubles, this is called constant returns to scale

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 7E
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The phrase “returns to scale” is a way of describing the change in output that is produced as a result of a relative change in inputs used.

 

Which of the following statements is true?

 

If inputs are doubled and output doubles, this is called increasing returns to scale.

 

If inputs are doubled and output doubles, this is called constant returns to scale.

 

If inputs are tripled and output doubles, this is called increasing returns to scale.

 

If inputs are doubled and output doubles, this is called decreasing returns to scale.

 

If inputs are tripled and output doubles, this is called constant returns to scale

 

 

 

 

 

 

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