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Assume That Constant Returns to Scale Exists and That N

Question 22

Multiple Choice

Assume that constant returns to scale exists and that N and K both increase by 2%.Given this information,we know that

A) output (Y) will increase by 4%.
B) Y will increase by 2%.
C) Y will increase by less than 2%.
D) Y will increase by less than 4% and more than 2%.

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