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Figure 6.4.1 -In a Production Process, All Inputs Are Increased by 10%;

Question 115

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Figure 6.4.1 -In a production process, all inputs are increased by 10%; but output increases less than 10%. This means that the firm experiences: A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) negative returns to scale. Figure 6.4.1
-In a production process, all inputs are increased by 10%; but output increases less than 10%. This means that the firm experiences:


A) decreasing returns to scale.
B) constant returns to scale.
C) increasing returns to scale.
D) negative returns to scale.

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