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Suppose That When a Firm Increases Its Usage of All

Question 43

Multiple Choice

Suppose that when a firm increases its usage of all inputs by 100%, output increases by less than 100%. The firm's production function exhibits


A) decreasing returns to scale.
B) diminishing marginal returns.
C) decreasing marginal rate of technical substitution.
D) both a and b
E) both a and c

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