For This Question,assume That There Are Decreasing Returns to Capital,decreasing

question 65

Multiple Choice

For this question,assume that there are decreasing returns to capital,decreasing returns to labor,and constant returns to scale.Now suppose that both capital and labor decrease by 5%.Given this information,we know that output (Y) will

• A)not change.
• B)decrease by less than 5%.
• C)decrease by 5%.
• D)decrease by more than 5% but less than 10%.
• E) none of the above

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Capable of being imposed or carried out by law.

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Guarantees that rights or interests can be transferred from one party to another in a contract or agreement.

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