The diagram below shows an isoquant for the production of wheat

Economics Dec 03, 2020

The diagram below shows an isoquant for the production of wheat. Refer to the Figure. The situation pictured is one of; K 3 N Q = 100 Q = 50 10 20 30 Select one: a decreasing returns to scale, because the isoquants are convex. b.increasing returns to scale, because the isoquants are convex. c.decreasing returns to scale, because doubling inputs results in less than double the amount of output. d.increasing returns to scale, because doubling inputs results in more than double the amount of output. e.constant returns to scale, because the line through the origin is linear.

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Question - The diagram below shows an isoquant for the production of wheat. Refer to the figure. The situation pictured is one of.

Answer-(e) Constant returns to scale, because the line through the origin is linear.

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