If a firm's output doubles when all inputs are doubled,production is said to occur under conditions of
A)decreasing returns to scale.
B)increasing returns to scale.
C)intra- industry equilibrium.
D)constant returns to scale
E)imperfect competition.

Question

Quizplus · Accepted Answer

When a firm's output doubles as all inputs are doubled, it is experiencing constant returns to scale, meaning the output increases proportionally with the increase in inputs.

If a Firm's Output Doubles When All Inputs Are Doubled,production