If the Production Function Exhibits Increasing Returns to Scale in the Steady

question 54

Multiple Choice

If the production function exhibits increasing returns to scale in the steady state, an increase in the rate of growth of population would lead to:

• A) growth in total output and growth in output per worker.
• B) growth in total output but no growth in output per worker.
• C) growth in total output but a decrease in output per worker.
• D) no growth in total output or in output per worker.

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Definitions:

Transaction

An instance of buying or selling, or the exchange of goods, services, or funds.

Range

The difference between the highest and lowest values in a set of numbers.

Domain

In mathematics, it is the set of all possible input values for a function; in computing, it refers to a distinct subset of the Internet under the control of a specific organization or individual.

Staff Allocation

The process of assigning employees to various projects, duties, or departments based on their skills, availability, and the operational needs of the organization.