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:

Cycle View

An approach in supply chain management focusing on the processes and activities involved in satisfying customer demand through repetitive patterns.

Supply Chain Processes

The operational activities and procedures involved in the flow of goods and services from suppliers to customers in a supply chain.

Customer Orders

Requests made by customers for the purchase of goods or services, which typically specify the quantity and terms of sale.

CRM Systems

Customer Relationship Management Systems, technology platforms that help businesses manage and analyze customer interactions and data.