Returns to scale

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Returns to scale

Devika
Suppose all the input and output prices double. The level of output produced by a profit maximizing firm which uses a decreasing returns to scale technology will

a) be double of its original output
b) increase, but not necessarily double
c) remain constant
d) change, but we cannot say in which direction
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Re: Returns to scale

Laracroft
Is it Option C ??
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Re: Returns to scale

Devika
Yes.
Explain please?