Multiple Choice
Consider the aggregate production function Y = F(K,L) .If the inputs K and L are increased by 5% each and total output (Y) increases by 5% as a result,then this production function is displaying
A) increasing returns to scale.
B) constant returns to scale.
C) decreasing returns to scale.
D) diminishing marginal returns.
E) a change in technology.
Correct Answer:

Verified
Correct Answer:
Verified
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