__________ is a property of production function that holds when a proportional increase in all inputs results in an increase in output by the same proportion.

Constant returns to scale

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Increasing returns to scale

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Decreasing returns to scale

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None of these

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Solution

The correct option is A Constant returns to scale
Constant returns to scale: If increases in outputs is in the same proportion as increase in quantity of all inputs, returns to scale are said to be constant. The terms in the Cobb-Douglas function are raised to the coefficeint of 1.

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Similar questions

Constant returns to scale (CRS) is a property of production function that holds when a proportional increase in all inputs results in an increase in output by the same proportion.

Increasing returns to scale (IRS) holds when a proportional increase in all inputs results in an increase in output by more than the proportion.

Q. __________ holds when a proportional increase in all inputs results in an increase in output by more than the proportion

Q. ________ holds when a proportional increase in all inputs results in an increase in output by less than the proportion.

Q. If all inputs are increased in the same proportion, then it is a case of ___________.
(i) Short run production function
(ii) Long run production function
(iii) Laws of variable proportions
(iv) Laws of returns to scale

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__________ is a property of production function that holds when a proportional increase in all inputs results in an increase in output by the same proportion.

The correct option is A Constant returns to scaleConstant returns to scale: If increases in outputs is in the same proportion as increase in quantity of all inputs, returns to scale are said to be constant. The terms in the Cobb-Douglas function are raised to the coefficeint of 1.

The correct option is A Constant returns to scale
Constant returns to scale: If increases in outputs is in the same proportion as increase in quantity of all inputs, returns to scale are said to be constant. The terms in the Cobb-Douglas function are raised to the coefficeint of 1.