Introduction to Economics 1 Deneme Sınavı Sorusu #1144491

What does it mean to have constant returns to scale?


All resources used in production can change.

Economies of scale is the competitive advantage.

Economies of scale are cost advantages companies experience when production becomes efficient.

If a firm grows larger, its costs drop, making it more profitable than smaller firms.

Constant returns to scale. When an increase in inputs (capital and labor) cause the same proportional increase in output. 


Yanıt Açıklaması:

Constant Returns to Scale, an increase in output by the same percentage as an increase in all inputs.

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