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

question 13

Multiple Choice

If your firm's production function has constant returns to scale,then if you double all your inputs,your firm's output will

• A)double and productivity will rise.
• B)double but productivity will not change.
• C)more than double and productivity will rise.
• D)more then double but productivity will not change.

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Definitions:

Respondent Behavior

A type of behavior that occurs in response to a specific stimulus without conscious intention, often as a result of conditioning.

Observational Learning

The process of acquiring knowledge or skills by watching and imitating others.

Disinhibition

The reduction of restraint or inhibition, leading to the expression of behaviors normally kept under control.

Anonymity

The condition of being anonymous; lacking identifiable characteristics.