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Commerce · Q1291

Economics

Graduate and Post Graduate · Commerce · question 1291

Q1291

Consider the following combinations of inputs and outputs- Labour Capital Output 5 10 1 6 12 2 7 14 3 8 16 4 9 18 5 10 20 6 This production technology satisfies

Consider the following combinations of inputs and outputs-
Labour Capital Output
5 10 1
6 12 2
7 14 3
8 16 4
9 18 5
10 20 6
This production technology satisfies
A.
increasing returns to scale
B.
diminishing returns to scale
C.
constant returns to scale
Answer
D.
increasing returns initially, followed by decreasing returns to scale

Answer: Option C

Solution

Answer: Option C
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