Economics A Level: What does it mean if there are:
1. Increasing RTS
2. Constant RTS
3. Decreasing RTS

Question

What does it mean if there are:
1. Increasing RTS
2. Constant RTS 
3. Decreasing RTS

go kys · Accepted Answer

1. When an Increase in Factor Inputs leads to More % Increase in Output
2. When an Increase in Factor Inputs leads to same % of Output 
3. When an Increase in Factor Input leads to Less % Increase in Output

Economics A Level

What does it mean if there are: 1. Increasing RTS 2. Constant RTS 3. Decreasing RTS

1. When an Increase in Factor Inputs leads to More % Increase in Output 2. When an Increase in Factor Inputs leads to same % of Output 3. When an Increase in Factor Input leads to Less % Increase in Output

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