Question: Using a numerical example, explain the difference between constant returns to scale and increasing returns to scale. (5 percent) Complete the following table: (7 percent)

Using a numerical example, explain the difference between constant returns to scale and increasing returns to scale. (5 percent)

Complete the following table: (7 percent)

Capital

Output

Average Product of Capital

Marginal Product of Capital

0

0

5

150

10

320

15

440

20

540

25

610

30

650

Does the production process described in the above table exhibit diminishing marginal product of capital? Explain your answer. (3 percent)

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