-The Table in the Above Figure Shows the Levels of Output

question 101

Multiple Choice

-The table in the above figure shows the levels of output resulting from different levels of inputs.At which level of input are there constant returns to scale?

• A) 400-600 units
• B) Constant returns to scale exist throughout all levels of production.
• C) Constant returns to scale do not exist at any level of production.
• D) No firm conclusions can be drawn.

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Definitions:

Investment

The distribution of assets, typically financial, with the aim of earning revenue or gains.

Private Saving

The portion of households' disposable incomes that is not spent on consumption but saved for future use.

Closed Economy

An economic system that does not interact with other economies in terms of trade, investment, or capital flow.

Households

Economic units consisting of all individuals who occupy a home, which participate in economic decisions.