Fixed proportions production functions always have:
A)varying returns to scale.
B)constant returns to scale.
C)increasing returns to scale.
D)decreasing returns to scale.

Question

Quizplus · Accepted Answer

Fixed proportions production functions have a fixed ratio of inputs required to produce a certain output. Therefore, if the inputs increase in a certain proportion, the output will also increase in the same proportion, leading to constant returns to scale.

Fixed Proportions Production Functions Always Have