For a year, a company hires two employees and rents 15 acres of land. It yields 150,000 bushels of grain. It could have produced 325,000 bushels if it had quadrupled its acreage and workers. Is the return to scale steady, decreasing, or increasing?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 30P
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For a year, a company hires two employees and rents 15 acres of land. It yields 150,000 bushels of grain. It could have produced 325,000 bushels if it had quadrupled its acreage and workers. Is the return to scale steady, decreasing, or increasing? 

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