What instance might occur that would cause constant returns

Reference no: EM13178877

What is a SITUATION in which this might happen in a business? I don't want a numerical solution. Rather, I want to know what instance might occur that would cause constant returns to scale.

Example response: For decr returns to scale, if a firm hires double the amount of managers and also doubles all other input, the managers may not be able to manage their tasks at hand because of how difficult the company has become to handle. Therefore output will be less.

Reference no: EM13178877

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