Question

Returns to scale will be said to be in operation when quantity of _______.

• A. all inputs are changed
• B. all inputs are changed in already established proportion
• C. all inputs are not changed
• D. one input is changed, while quantity of all other inputs remains the same

Answer 1

Answer: (B)

all inputs are changed in already established proportion

Returns to scale is applicable in the long run and in the long run all factors are variable and will be varied in the already established proportion.