If one unit of labour and one unit of capital give 200 units of output, two units of labour and two unit of capital give 400 units of output and 5 units of labour and five units of capital give 1000 units of output then this is a case of ?
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No of units
No of units(capital +labour) TP MP
No of units(capital +labour) TP MP0 --- ---
No of units(capital +labour) TP MP0 --- ---1+1 200 . 200
2002+2 400 200
2003+3 600 200
2004+4 800 200
2005+5 1000 200
200Since both the fixed and variable factors are increasing in the same proportion it's a case of returns of scale and also the MP is constant, thus there are constant returns to scale.
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