Constant Returns to Scale Are Said to Exist When Inputs

question 144

Multiple Choice

Constant returns to scale are said to exist when inputs are increased by some percentage and output increases by a(n) __________ percentage, causing unit costs to __________.

• A)greater; fall
• B)smaller; fall
• C)greater; rise
• D)smaller; rise
• E)equal; remain constant

---

Definitions:

Predictor Variables

Variables in statistical models that are used to predict outcomes of interest.

Second-order Polynomial

A polynomial of degree two, characterized by a quadratic equation that includes squared terms as its highest order.

Influenced

The effect or impact of one variable on another within a study or analysis.

Linear Regression Equation

An equation that describes the linear relationship between two or more variables, typically involving a dependent variable and one or more independent variables.