Consider the Aggregate Production Function Y = F(K,L)

question 113

Multiple Choice

Consider the aggregate production function Y = F(K,L) .If the inputs K and L are increased by 5% each and total output (Y) increases by 5% as a result,then this production function is displaying

• A)increasing returns to scale.
• B)constant returns to scale.
• C)decreasing returns to scale.
• D)diminishing marginal returns.
• E)a change in technology.

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