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A Firm Uses Workers and Seed to Grow Lettuce

Question 126

Multiple Choice

A firm uses workers and seed to grow lettuce.Its lettuce output rises from 100 tons to 200 tons when the number of workers increases from 25 to 75.Its production process shows


A) decreasing returns to scale.
B) diminishing returns to labor.
C) increasing long-run average cost.
D) decreasing short-run average variable cost.

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