Answer:
a scale model each size is a certain amount smaller
Explanation:
Answer:
Production Function : TFSq = f { ingredient 1 ...... ing. i }
Increasing/ Constant/ Increasing Returns to Scale :
Output change > / = / < Input change respectively
Explanation:
Production Function is the relationship between production inputs & outputs, given technology. It denotes the maximum output that can be generated with given inputs.
Tutti Frutti Smoothie [TFS] quantity = Function of {Ingredient1.....ingredient i}
Returns to Scale represents change in output when all inputs change in same proportion.
- Constant Returns to Scale [CRS] : Output Change = All inputs change
- Increasing Returns to Scale [IRS] : Output Change > All inputs change
- Negative Returns to Scale [NRS] : Output Change < All inputs change
When all inputs (ingredients) change by same proportion i.e get twice 2X :- If output of Tutti Frutti Smoothie increases by > 2X i.e 3X - IRS. If it increases equal ie 2X - CRS. If it increases lesser i.e 1.5X - CRS.
