The table in the above figure shows the levels of output resulting from different levels of inputs. At which level of input are there constant returns to scale?
A) 400-600 units
B) Constant returns to scale exist throughout all levels of production.
C) Constant returns to scale do not exist at any level of production.
D) No firm conclusions can be drawn.
A
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Monetarists reject using discretionary monetary policy as an effective stabilization tool because they believe:
a. if the money supply grows at a rate equal to the economy's long-run rate of economic growth, then the economy will be unstable. b. that changes in the money stock do not affect output or prices. c. the Fed will miss its money supply targets and make the economy worse. d. monetary policy can stimulate aggregate demand, but it cannot affect inflation.
Keynes believed equilibrium income was:
A. not fixed at the economy's potential income. B. always below the economy's potential income. C. fixed at the economy's potential income. D. always above the economy's potential income.
Which of the following stock market decreases is best explained by the notion of a bubble collapsing?
A. The U.S. stock market in technology stocks in 2000 B. The early-1982 drop in the DJIA C. The U.S. stock market's drop in late 2008 D. The decade of the 1970s
Availability of Substitutes
What will be an ideal response?