When labor is doubled and capital is tripled, a firm's output increases 2.5 times. Which of the following is true? O We need more information to determine the degree of returns to scale of this firm's production function. This firm's production function must exhibit increasing returns to scale. This firm's production function must exhibit decreasing returns to scale. This firm's production function must exhibit constant returns to scale.
When labor is doubled and capital is tripled, a firm's output increases 2.5 times. Which of the following is true? O We need more information to determine the degree of returns to scale of this firm's production function. This firm's production function must exhibit increasing returns to scale. This firm's production function must exhibit decreasing returns to scale. This firm's production function must exhibit constant returns to scale.
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.8P
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