A firm employs three factors of production: capital, land and labour. The table below shows how the firm's output is affected by changing the amount employed of these factor inputs.
| Units of output | Units of capital | Units of land | Labour (Number of workers) |
|---|---|---|---|
| 200 | 10 | 15 | 30 |
| 600 | 40 | 60 | 120 |
| 1200 | 80 | 120 | 240 |
| 1800 | 100 | 150 | 300 |
| 2400 | 150 | 225 | 450 |
The firm experiences constant returns to scale when it increases its output from
200 to 600 units.
600 to 1200 units.
1200 to 1800 units.
1800 to 2400 units.
156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.