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If the Percentage Increase in a Firm's Output Is the Same

Question 27

Multiple Choice

If the percentage increase in a firm's output is the same as the percentage increase in all of its inputs, then:


A) diminishing marginal returns have begun.
B) the firm is employing the least cost combination of inputs.
C) returns to scale are constant.
D) returns to scale are decreasing.
E) returns to scale are increasing.

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