Question

3) Identify the regions of increasing, constant, and decreasing returns to scale on the isoquant map shown. (40 points) K 14

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Point A to C: Constant returns to scale

Point C to E: Increasing returns to scale

Point E to G: Decreasing returns to scale

Explanation:

When inputs are increased by a given proportion, from point A to C, output increases by a constant amount of 100. So, from point A to C, it is called constant returns to scale. From point C to E, output increases at an increasing rate, i.e., 200 and 300. So, from point C to E, it is called increasing returns to scale. From point E to G, output increases at a decreasing rate ,i.e., 100 and 50. So, from point E to G, is called decreasing returns to scale.

Add a comment
Know the answer?
Add Answer to:
3) Identify the regions of increasing, constant, and decreasing returns to scale on the isoquant map shown. (40 poin...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT