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ProductLaborCapitalTobacco products0.180.33Paper products0.440.65Transportation ...

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ProductLaborCapitalTobacco products0.180.33Paper products0.440.65Transportation ...

Product	Labor	Capital
Tobacco products	0.18	0.33
Paper products	0.44	0.65
Transportation equipment	0.44	.048
Furniture	0.60	0.40
Electronic equipment	0.49	0.51
Petroleum	0.30	0.88
Food	0.43	0.48
Clothing	0.70	0.30
Primary metal	0.51	0.73

According to the table above, transportation equipment production exhibits

▸ decreasing returns to scale.

▸ constant returns to scale.

▸ increasing returns to scale.

▸ varying returns to scale.

Textbook

Managerial Economics and Strategy

Edition: 3^rd

Authors: Perloff, Brander

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