Graphically,the _____ indicates whether returns to scale are increasing,constant,or decreasing.
A)spacing of isoquants along a ray from the origin
B)slope of the isoquant
C)curvature of the isoquant
D)steepness of the isoquant

Question

Quizplus · Accepted Answer

The spacing of isoquants along a ray from the origin indicates whether returns to scale are increasing, constant, or decreasing. Closer spacing as we move along the ray indicates increasing returns to scale, constant spacing indicates constant returns to scale, and wider spacing indicates decreasing returns to scale.

Graphically,the _____ Indicates Whether Returns to Scale Are Increasing,constant,or Decreasing