2967EconomicsMedium
If a production function exhibits constant returns to scale?
Adoubling all of the inputs has absolutely no impact on output because output is constant
Bdoubling all of the input’s doubles output
Cdoubling all of the inputs more than doubles output due to the catch-up effect
Ddoubling all of the inputs less than doubles output due to diminishing returns
Correct answer
B. doubling all of the input’s doubles output
Explanation
The correct answer is doubling all of the input’s doubles output.