Constant returns to scale means that, given any constant x 0, A) xY = zF(xK, xN^d). B) xY zF(xK, xN^d). C) xY

Name: Constant returns to scale means that, given any constant x > 0, A) xY = zF(xK, xN d ). B) xY > zF(xK, xN d ). C) xY d ).
Brand: Quizplus
Rating: 4.7 (41 reviews)

Question

Constant returns to scale means that, given any constant x > 0, A) xY = zF(xK, xN^d). B) xY > zF(xK, xN^d). C) xY < zF(xK, xNd). D) xY = ZxF(K, Nd). E) xY = xzF(xF, xN^d).

Quizplus · Accepted Answer

In constant returns to scale, if all inputs are scaled by a constant factor x, the output is also scaled by the same factor x. Hence, xY = zF(xK, xN^d) represents this property correctly.

Constant Returns to Scale Means That, Given Any Constant X