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Question Practice

Which scenario represents Constant Returns to Scale in a business context?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Microeconomics
Production And Costs
Question Bank

Which scenario represents Cons...

Single Answer MCQ
Q-00089452

Which scenario represents Constant Returns to Scale in a business context?

1

A factory doubles its employee count and output doubles as well

2

A restaurant increases its staff and output increases but not proportionally

3

A company triples input but only doubles output

4

A firm reduces input but output remains unchanged

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Q1.

What does the production function describe?

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Q2.

If a production function exhibits constant returns to scale, which of the following is true?

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Q3.

Which production function exhibits increasing returns to scale?

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Q4.

What is the marginal product of labor (MPL)?

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