If a Production Function Has Constant Returns to Scale,output Can

question 154

Multiple Choice

If a production function has constant returns to scale,output can be doubled if

• A)labor alone doubles.
• B)all inputs but labor double.
• C)all of the inputs double.
• D)None of the above is correct.

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Definitions:

Public Good

A product or service that is non-excludable and non-rivalrous, meaning it can be consumed by multiple people without diminishing its availability to others.

Common Resource

A resource that is nonexcludable but rival in consumption.

Nonexcludable

A characteristic of a good or service that prevents people from being excluded from using it, often leading to challenges in private market provision.

Rival In Consumption

Goods or services that cannot be enjoyed by more than one person at the same time, as the consumption by one prevents that by another.