When a production function exhibits increasing returns to scale, it means that: O A. a proportional increases in all inputs leads to the same proportional increase in output O B. a proportional increases in all inputs leads to smaller proportional increase in output Oc. a proportional increases in all inputs leads to the same proportional increase in output O D. the RTS (ofL for K) is constant
When a production function exhibits increasing returns to scale, it means that: O A. a proportional increases in all inputs leads to the same proportional increase in output O B. a proportional increases in all inputs leads to smaller proportional increase in output Oc. a proportional increases in all inputs leads to the same proportional increase in output O D. the RTS (ofL for K) is constant
Chapter1: Making Economics Decisions
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![When a production function exhibits increasing returns to scale, it means that:
O A. a proportional increases in all inputs leads to the same proportional increase
in output
OB.
a proportional increases in all inputs leads to smaller proportional increase
in output
Oc. a proportional increases in all inputs leads to the same proportional increase
in output
O D. the RTS (of L for K) is constant](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ab31bcf-aab1-48c8-94e4-6860de3eccf0%2F3e612291-3500-4d75-8674-cca477573b3f%2Fhr0y8q7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:When a production function exhibits increasing returns to scale, it means that:
O A. a proportional increases in all inputs leads to the same proportional increase
in output
OB.
a proportional increases in all inputs leads to smaller proportional increase
in output
Oc. a proportional increases in all inputs leads to the same proportional increase
in output
O D. the RTS (of L for K) is constant
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