If Your Firm's Production Function Has Constant Returns to Scale

question 46

Multiple Choice

If your firm's production function has constant returns to scale and you increase all your inputs by 60%,then your firm's output will

• A)not change.
• B)increase,but by less than 60%
• C)increase by 60%
• D)increase by more than 60%.

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Definitions:

UFOs

Unidentified Flying Objects, referring to any aerial phenomenon that cannot immediately be identified or explained.

Muller-Lyer Illusion

A visual illusion where two lines of equal length appear to be of different lengths because of the presence of inward or outward facing angles at their ends.

Perceptual Illusion

An incorrect perception of a sensory experience, where what we perceive differs from objective reality.

Misleading Cues

Incorrect signals or information that can lead to false assumptions or interpretations.