In the long run, if inputs are increased by 10 percent and output increases by 10 percent, then __________ are said to exist.
A)economies of scale
B)constant returns to scale
C)diseconomies of scale
D)diminishing marginal returns

Question

Quizplus · Accepted Answer

This scenario describes constant returns to scale, where increasing the amount of inputs by a certain percentage leads to an equal percentage increase in output.

In the Long Run, If Inputs Are Increased by 10