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Which of the Following Cases Exhibit Increasing Returns to Scale

Question 11

Multiple Choice

Which of the following cases exhibit increasing returns to scale?


A) Output increases by 5 percent when inputs are increased by 6 percent.
B) Output increases by 6 percent when inputs are increased by 5 percent.
C) Output increases by 7 percent when inputs are increased by 7 percent.
D) Output declines by 2 percent when inputs are increased by 1 percent.

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