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If all inputs are trebled and the resultant output is doubled, this is a case of

A. Constant returns to scale

B. Increasing returns to scale

C. Diminishing returns to scale

D. Negative returns to scale

Answer: Option C

Solution(By Examveda Team)

If all inputs are trebled and the resultant output is doubled, this is a case of Diminishing returns to scale.

This Question Belongs to Commerce >> Economics

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Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.