In a particular production process,if the quantities of all inputs used double,then the quantity of output doubles as well.This means that
A)the production process cannot be enhanced by technological advances.
B)no mathematical representation of the relevant production function can be formulated.
C)the relevant production function has the limits-to-growth property.
D)the relevant production function has the constant-returns-to-scale property.

Question

Quizplus · Accepted Answer

The fact that the quantity of output doubles when the quantities of all inputs used double suggests that the production function exhibits constant returns to scale. This means that if inputs are scaled up or down by some factor, the output will increase or decrease by that same factor. In other words, a proportional increase in all inputs leads to a proportional increase in output, which is the defining characteristic of constant returns to scale. Therefore, option D is the correct answer, and options A, B, and C are all incorrect.

In a Particular Production Process,if the Quantities of All Inputs