If a production function has constant returns to scale, how can output be doubled?
A) by doubling labour
B) by doubling any one of the inputs
C) by doubling all of the inputs
D) by increasing all inputs by more than double

Question

Quizplus · Accepted Answer

Doubling all of the inputs in a production function with constant returns to scale will double the output, as the output increases in the same proportion as the increase in inputs.

If a Production Function Has Constant Returns to Scale, How