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12. Input Combination. The following production table provides estimates of the maximum amounts of output possible with diffe

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Begin with the level of production with one unit of labour and one unit of capital, we have a total output of 88 units. Now increase the units of labour and capital by one, the production level at two units of labour and two units of capital is 176. Similarly when three units of labour and three units of capital are used, production is increased to 264.

this shows that as the inputs are increased by a certain proportion output is also increased by the same proportion. When this happens there are constant returns to scale

therefore, this production function exhibits constant returns to scale.

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