If your firm's production function has constant returns to scale,then if you double all your inputs,your firm's output will
A)double and productivity will rise.
B)double but productivity will not change.
C)more than double and productivity will rise.
D)more then double but productivity will not change.

Question

Quizplus · Accepted Answer

Constant returns to scale means that if all inputs are increased by a certain proportion, the output will increase by the same proportion. Therefore, if you double all inputs, the output will also double, but productivity (output per unit of input) will remain the same.

If Your Firm's Production Function Has Constant Returns to Scale,then