If the number of workers in an economy doubled,all other inputs stayed the same,and there were constant returns to scale,productivity would
A)fall to less than one-half of its former value.
B)fall,but it would still be greater than one-half of its former value.
C)stay the same.
D)rise but less than double.

Question

Quizplus · Accepted Answer

If the number of workers in an economy doubled and all other inputs stayed the same, the productivity would fall, but it would still be greater than one-half of its former value. This is because the constant returns to scale mean that doubling the number of workers would not double the output, but it would increase it by less than double. Therefore, productivity would decrease but still be greater than one-half of its former value.

If the Number of Workers in an Economy Doubled,all Other