Table 7-4 Shows the Shows the Quantities of Labor and Capital

question 91

Multiple Choice

Table 7-4 shows the shows the quantities of labor and capital required to produce various levels of output.
Table 7-4 $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Quantity of } \\\text { Capital }\end{array} & \begin{array} { c } \text { Quantity } \\\text { of Labor }\end{array} & \text { Output } \\\hline 6 & 2 & 40 \\\hline 12 & 4 & 100 \\\hline 24 & 8 & 220 \\\hline 48 & 16 & 440 \\\hline 96 & 32 & 800 \\\hline\end{array}$$
-Refer to Table 7-4.When the firm increases production from 48 units of capital and 16 units of labor to 96 units of capital and 32 units of labor,the production function exhibits:

• A)increasing returns to scale.
• B)constant returns to scale.
• C)diminishing marginal returns.
• D)decreasing returns to scale.

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