Solved

If Output Is Produced with Two Factors of Production and with Increasing

Question 30

Multiple Choice

If output is produced with two factors of production and with increasing returns to scale,


A) there cannot be diminishing marginal rate of substitution.
B) all inputs must have increasing marginal products.
C) on a graph of production isoquants, moving along a ray from the origin, output more than doubles as the distance from the origin doubles.
D) the marginal product of at least one input must be increasing.
E) all inputs must have decreasing marginal products.

Correct Answer:

verifed

Verified

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

Related Questions