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

Question 12

Multiple Choice

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

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