Are returns to a single input and returns to scale one and the same? Explain.
What will be an ideal response?
No.Returns to a single input refers to changes in output when a firm increases one input while holding all other input kept constant.Returns to scale refers to a technical property of production that examines changes in output subsequent to a proportional change in all inputs.
Economics
You might also like to view...
If the economy experiences a negative supply shock, which of the following will be true?
A) Inflation will fall, and real GDP will fall. B) Inflation will rise, and real GDP will rise. C) Inflation will fall, and real GDP will rise. D) Inflation will rise, and real GDP will fall.
Economics
If aggregate expenditure is less than GDP, then inventories rise and GDP falls
Indicate whether the statement is true or false
Economics