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A Firm Has a Production Function Q = LK,where L

Question 26

Multiple Choice

A firm has a production function Q = LK,where L is labour and K is capital.If L and K can take whole values ,then the firm has


A) increasing returns to scale.
B) constant returns to scale.
C) diseconomies of scale.
D) decreasing returns to scale.
E) rising average total costs.

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