An Aggregate Production Function Exhibits Constant Returns to Scale When

question 78

Multiple Choice

An aggregate production function exhibits constant returns to scale when a one percent increase in labour input

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

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