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Production Function: TP, MP and AP · Question 50 of 62

Question 50

EasyOriginal question

Returns to scale describe what happens to output when

only one input is increasedCorrect answerYour answerthe price of output risesCorrect answerYour answerall inputs are increased in the same proportionCorrect answerYour answerone input is reducedCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Returns to scale compare the rise in output with the proportional rise in every input together, a long-run idea.

Concept: Meaning of returns to scale
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsReturns to scale

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Ten questions from Production Function: TP, MP and AP, at your own pace.

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