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

Question 14

Multiple Choice

If the percentage increase in a firm's output is higher than 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 increasing.
E) returns to scale are decreasing.

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