Returns to scale is a concept that operates
A) only in the short run.
B) only in the long run.
C) in both the long run and the short run.
D) in either the long run or the short run but never both.

Question

Quizplus · Accepted Answer

Returns to scale refers to how output changes in response to a proportional change in all inputs in the production process, which is a concept that applies in the long run when all factors of production can be varied.

Returns to Scale Is a Concept That Operates