Question : When all inputs are doubled and a result, output also doubles, then we have:
Option 1: constant returns to scale
Option 2: decreasing returns to scale
Option 3: increasing returns to scale
Option 4: none of the options
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Correct Answer: constant returns to scale
Solution : The correct answer is constant returns to scale.
Constant returns to scale occur in Economics when all inputs (such as labour, capital and materials) are doubled as a result, the output also increases by the same factor. This implies that a proportional increase in inputs leads to an equal proportional increase in output. In such a scenario, a firm or production process constantly returns to scale.
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Question : Returns to scale is a
Option 1: timeless phenomenon
Option 2: directionless phenomenon
Option 3: short-run phenomenon
Option 4: long-run phenomenon
Question : Directions: If 2 + 3 + 5 = 30; 3 + 4 + 6 = 72; 5 + 6 + 2 = 60; then 5 + 4 + 0 = ?
Option 1: 40
Option 2: 30
Option 3: 0
Option 4: None
Question : A sum was doubled with a 12.5% rate of simple interest per annum. Then time taken for that sum to be doubled is:
Option 1: $8\frac{1}{2}$ years
Option 2: 8 years
Option 3: 10 years
Option 4: $12\frac{1}{2}$ years
Question : If the momentum of a body is doubled, the kinetic energy is:
Option 1: becomes 1/4 times
Option 2: unchanged
Option 3: doubled
Option 4: becomes 4 times
Question : Directions: If 53 ÷ 31 = 2; 45 ÷ 27 = 1; 69 ÷ 32 = 3; then 97 ÷ 26 = ?
Option 1: 1
Option 2: 2
Option 3: 3
Option 4: 4
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