Multiple Choice
When a firm faces constant returns to scale, a proportionate increase in all inputs:
A) will keep output constant.
B) will increase output by the same proportion as the increase in inputs.
C) will lead to a decline in the cost of production.
D) will result in a higher-than-proportionate increase in output.
E) will not change the total costs of production.
Correct Answer:

Verified
Correct Answer:
Verified
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