Question
If a change in all inputs leads to a proportionate change in output, it is case of
Answer: Option D
Answer: (d)
If output increases by that same proportional change as all inputs change then there are constant returns to scale (CRS).
If output increases by less than that proportional change in inputs, there are decreasing returns to scale (DRS). If output increases by more than that proportional change in inputs, there are increasing returns to scale (IRS).
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Answer: (d)
If output increases by that same proportional change as all inputs change then there are constant returns to scale (CRS).
If output increases by less than that proportional change in inputs, there are decreasing returns to scale (DRS). If output increases by more than that proportional change in inputs, there are increasing returns to scale (IRS).
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