Multiple Choice
If the labor required per unit of output falls as output increases (such as is specified in the Krugman model) , this can be thought of as a situation
A) of constant returns to scale.
B) of decreasing returns to scale.
C) of increasing returns to scale.
D) that is exactly the same situation as was the case in Ricardo's analysis.
Correct Answer:

Verified
Correct Answer:
Verified
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