The assumption of constant returns to capital alone implies that larger firms should be more efficient than smaller firms.The reason this doesn't necessarily imply a tendency toward monopolization is that
A) most industries are perfectly competitive in nature
B) firms have more inputs than just capital
C) constant returns to capital alone still implies decreasing returns to all factors of production taken together
D) if one firms increases its use of capital, other firms can also capture some of the production benefits of the new capital through spillover effects
E) none of the above
Correct Answer:
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Q1: Which of the following statements is FALSE?
A)endogenous
Q2: Assume an endogenous growth model with labor
Q4: Which of the following economists did NOT
Q5: A production function that assumes a diminishing
Q6: Which of the following countries annual growth
Q7: The concept of diminishing marginal returns implies
Q8: Assume an endogenous growth model with labor
Q9: Assume an endogenous growth model with labor
Q10: A production function with constant returns to
Q11: Assume an endogenous growth model with labor
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