Solved

All Else Equal,if There Are Diminishing Returns and Constant Returns

Question 75

Multiple Choice

All else equal,if there are diminishing returns and constant returns to scale,then what happens to productivity if capital and labor both increase but capital increases by more?


A) Productivity will definitely fall.
B) Productivity will definitely be unchanged.
C) Productivity will definitely rise.
D) None of the above are necessarily correct.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions