One question that economists are interested in when studying the tion possibilities of a country is the following: If the amount of both capital (K) and labor (L) in a country doubles, will its output double as well? The intuition behind this is simple. If a company can build 1,000 vehicles with one fully staffed factory, it should be able to produce 2,000 vehicles with two fully staffed factories. To that end, we will say that a production function exhibits -Constant Returns to Scale (CRS) if F(2K,2L)=2F(K,L). That is, if a country is producing output F(K,L), doubling the amount of capital and labor will in fact double the output. -Decreasing Returns to Scale (DRS) if F(2K,2L)<2F(K,L). That is, if a country is producing output F(K,L), doubling the amount of capital and labor will result in less than double the output. -Increasing Returns to Scale (IRS) if F(2K,2L)>2F(K,L). That is, if a country is producing output F(K,L), doubling the amount of capital and labor will result in more than double the output.