Assume That There Are Decreasing Returns to Capital, Decreasing Returns

Multiple Choice

Assume that there are decreasing returns to capital, decreasing returns to labour, and constant returns to scale. An increase in the capital stock will cause which of the following?

A) Decrease the capital- labour ratio.
B) An increase in output per capita.
C) No change in output.
D) Output to increase, but by more and more as the capital stock increases.
E) A decrease in output.