Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:
A company that intends to double its plant and labour capacity expects its output to also double, this means the company expects-
Options:
Constant returns to scale (CRS)
Increasing Returns to Scale (IRS)
Decreasing Returns to Scale (DRS)
None of these
Correct Answer:
Constant returns to scale (CRS)