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Assume That the Aggregate Production Function Exhibits Constant Returns to Scale

Question 27

Multiple Choice

Assume that the aggregate production function exhibits constant returns to scale. Given this assumption, successive and equal increases in capital per worker will cause which of the following to occur?


A) Output per worker will increase by a constant amount.
B) Output per worker will not change.
C) Output per worker will increase by a larger amount.
D) Output per worker will decrease by a smaller amount.
E) Output per worker will increase by a smaller amount.

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