Asked by Wassie rehman on May 18, 2024
Verified
(Table: Long-Run Total Cost) Use Table: Long-Run Total Cost.This soybean grower receives constant returns to scale over the _____ and _____ bushels.
A) first;second
B) third;fourth
C) fourth;fifth
D) fifth;sixth
Constant Returns
An economic principle where increasing inputs in production results in a proportional increase in outputs.
Scale
A concept in economics that refers to the level at which a company or economy operates, particularly in terms of production and cost efficiency.
Soybean Grower
An individual or entity engaged in cultivating soybeans, often as a commercial farming operation, focusing on the production of soy for various uses including food products and industrial applications.
- Recognize the relationship between the quantity of inputs and production efficiency.
Verified Answer
KT
Katherine TorresMay 21, 2024
Final Answer :
B
Explanation :
Constant returns to scale occur when increasing the amount of inputs leads to a proportional increase in output. Without the specific table data, we can't identify the exact intervals. However, the correct answer typically involves identifying the range(s) where doubling the inputs (e.g., land, labor) results in doubling the output (e.g., bushels of soybeans), indicating constant returns to scale.
Learning Objectives
- Recognize the relationship between the quantity of inputs and production efficiency.