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If the Output Elasticities of All Inputs Used by a Firm

Question 49

Multiple Choice

If the output elasticities of all inputs used by a firm are summed together, then the total


A) will be greater than one if returns to scale are decreasing.
B) will be equal to one if returns to scale are constant.
C) will be less than one if returns to scale are increasing.
D) All of the above are correct.

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