If a firm can double output by doubling the size of its operation, it is subject to
A) economies of scale
B) diseconomies of scale
C) constant returns to scale
D) increasing returns to scale
E) diminishing returns to scale

Question

Quizplus · Accepted Answer

This scenario describes constant returns to scale, where increasing the input by a certain factor leads to an equal increase in output.

If a Firm Can Double Output by Doubling the Size