Suppose That Each Worker Must Use Only One Shovel to Dig

question 29

Multiple Choice

Suppose that each worker must use only one shovel to dig a trench,and shovels are useless by themselves.In the long run,the firm will experience

• A) increasing returns to scale.
• B) constant returns to scale.
• C) decreasing returns to scale.
• D) The returns to scale cannot be determined from the information provided.

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Definitions:

Miller's Experiments

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