An Aggregate Production Function Exhibits Constant Returns to Scale When

question 110

Multiple Choice

An aggregate production function exhibits constant returns to scale when a 1% increase in labour input

• A)produces a 1% increase in output.
• B)along with a 1% increase in capital produces the same amount of output.
• C)along with a 1% increase in capital produces 1% more output.
• D)along with a 1% decrease in capital produces the same amount of output.
• E)induces a 1% increase in capital input.

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