Constant Returns to Scale Implies That If N and K

question 42

Multiple Choice

Constant returns to scale implies that if N and K both increase by 3% that

• A)output (Y)will increase by 3%.
• B)Y / N will increase by 3%.
• C)Y / N will increase by less than 3%.
• D)the capital-labor ratio will increase by 3%.

---

Definitions:

Digital Files

Electronic documents, images, or other content types stored in a digital format.

Competing Business

A business that offers similar services or products as another business, often within the same market or industry, leading to competition.

Wire Fraud

A fraudulent act involving the use of electronic communications or an information system with the intention of deceiving for personal gain.

Mail Fraud

A criminal offense involving the use of postal or electronic mail to carry out schemes designed to fraudulently obtain money or valuables.