Constant returns to scale is the situation in which a firm's output increases by the same percentage as the increase in its inputs.

Name: Constant returns to scale is the situation in which a firm's output increases by the same percentage as the increase in its inputs.
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

Constant returns to scale occur when increasing all inputs by a certain percentage results in an increase in output by the same percentage, indicating proportional growth.

Constant Returns to Scale Is the Situation in Which a Firm's