If a Production Function Exhibits Constant Returns to Scale, Doubling

question 17

Multiple Choice

If a production function exhibits constant returns to scale, doubling all of the inputs

• A) more than doubles output due to the catch-up effect.
• B) has absolutely no impact on output because output is constant.
• C) less than doubles output due to diminishing returns.
• D) doubles output.

---

Definitions:

Federal Arbitration Act

A United States federal statute that provides for the enforcement of arbitration agreements within the context of federal and interstate matters.

Final and Definite Award

In arbitration, a conclusive decision given by an arbitrator that resolves the dispute and is binding on all parties.

Arbitrator's Bias

A situation in which an arbitrator, who is supposed to act as an impartial third-party decision-maker in a dispute resolution process, shows unfair bias towards one of the parties.

Counterclaim

A claim made by the defendant against the plaintiff that is filed along with the defendant’s answer.