3. What is true about a function that has constant returns to scale? A. That increasing just labor or just input does not increase output B. That doubling either labor or capital doubles the output C. That doubling both labor and capital doubles the output D. That two firms using the same amounts of labor and of capital will produce exactly the same amount as a firm that uses the sum of their labor and of capital. E. None of these

3. What is true about a function that has constant returns to scale? A. That increasing just labor or just input does not increase output B. That doubling either labor or capital doubles the output C. That doubling both labor and capital doubles the output D. That two firms using the same amounts of labor and of capital will produce exactly the same amount as a firm that uses the sum of their labor and of capital. E. None of these

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.9P

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