The following table shows the various combinations of labour (L) and capital (K) and the resulting outputs
| Combination | Output (units) |
| 1L + 1K | 200 |
| 2L + 2K | 400 |
| 3L + 3K | 600 |
| 4L + 4K | 800 |
| 5L + 5K | 1000 |
A. Constant returns to scale
B. Increasing returns to scale
C. Diminishing returns to scale
D. None of the above
Answer: Option A
This Question Belongs to Management >> Managerial Economics
Join The Discussion