Suppose You Bake Cupcakes

question 85

Multiple Choice

Suppose you bake cupcakes.One day,you double the time you spend baking and double the sugar,flour,eggs,and all the other inputs in order to bake twice as many cupcakes.What kind of production function is this?

• A) decreasing returns to scale
• B) zero returns to scale
• C) constant returns to scale
• D) increasing returns to scale

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Definitions:

Federal Government

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Depression

An intense and extended decrease in economic activity, marked by substantial reductions in Gross Domestic Product (GDP), elevated unemployment rates, and deflation.

1920s

A decade marked by significant social, economic, and cultural changes, including the Roaring Twenties and the beginnings of the Great Depression.

National Output

The total value of all goods and services produced by a country over a specific time period.