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Which of the Following Statements Describes Increasing Returns to Scale

Question 5

Multiple Choice

Which of the following statements describes increasing returns to scale:


A) doubling the inputs used leads to double the output.
B) increasing the inputs by 50% leads to a 25% increase in output.
C) increasing inputs by 1/4 leads to an increase in output of 1/3.
D) none of the above.

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