Multiple Choice
If a production function exhibits increasing returns to scale, a 10% increase in:
A) input- use results in a less than 10% increase.
B) the LMC being above LAC.
C) output requires a more than 10% increase in the input- use.
D) output results in a less than 10% increase in the input- use.
Correct Answer:
Verified
Correct Answer:
Verified
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Q56: Figure 7A<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3559/.jpg" alt="Figure 7A
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