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An Example of Increasing Returns to Scale Is When Capital

Question 56

Multiple Choice

An example of increasing returns to scale is when capital and labor inputs:


A) both increase 10 percent and output increases 5 percent.
B) both increase 10 percent and output increases 10 percent.
C) both increase 5 percent and output increases 10 percent.
D) do not change and output decreases 5 percent.

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