Practice - Returns to Scale
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Practice Questions
Test your understanding with targeted questions
What does constant returns to scale mean?
💡 Hint: Think about what happens when resources are increased equally.
What does decreasing returns to scale indicate?
💡 Hint: Try to visualize what happens when you add one more resource.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What indicates increasing returns to scale?
💡 Hint: Consider what happens when inputs grow faster than the outputs.
True or False: Constant returns to scale leads to halved outputs when inputs are doubled.
💡 Hint: Reflect on the definitions of returns to scale.
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Challenge Problems
Push your limits with advanced challenges
A company doubles the number of machines and workers, with outputs escalating to 150% of the previous yield. Determine the type of returns it is experiencing.
💡 Hint: Focus on the ratio of input increase to output growth.
A farm increases its size and labor force, doubling them, but yield increases by only 70%. Categorize the return to scale.
💡 Hint: Analyze the impact of increased factors on final yield.
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Reference links
Supplementary resources to enhance your learning experience.