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Consider the Aggregate Production Function Y = F(K,L)

Question 113

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.

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