Q
If a production function exhibits constant returns to scale ?
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A
A. Doubling all of the inputs more than doubles output due to the catch-up effect
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B
B. Doubling all of the inputs has absolutely no impact on output because output is constant
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C
C. Doubling all of the inputs less than doubles output due to diminishing returns
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D
D. Doubling all of the input’s doubles output
Correct Answer:
D. D. Doubling all of the input’s doubles output
