If a firm doubles all inputs in the long run and the total output is less than doubled, this results in
a
diminishing returns
b
constant returns to scale
c
increasing returns to scale
d
decreasing returns to scale
Explanation
Correct Option
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Brainpill
10 years ago
The answe is D. That is, decreasing returns 2 scale. let me explain...
CONSTANT RETURNS 2 scale>>this is situation where a firm doubles all its input and "output is also doubled".
INCREASING RETURNS 2 SCALE>>This is a situation where a firm doubles all its input and "Output is More than doubled"
DECREASING RETURNS 2 SCALE>>This is a situation where a firm doubles its input and "Output is less than doubled"
It ought 2 be corrected.
