Consider a Two-Good Production Economy in Which Both Goods Are

Multiple Choice

Consider a two-good production economy in which both goods are produced with fixed proportions production functions.Then,some efficient allocations will exhibit unemployment of some factor providing

A) the firms use the inputs in different proportions.
B) the firms exhibit diminishing returns to scale.
C) the firms exhibit increasing returns to scale.
D) production can never be efficient if there are unemployed inputs.