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

Question 44

Multiple Choice

Consider the aggregate production function Y = F(K,L) .If the inputs K and L are increased by 5% each,and the production function displays constant returns to scale,then total output will increase by ________%.


A) 0
B) less than 5
C) 5
D) more than 5
E) Not enough information to determine

Correct Answer:

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