As a result of doubling all its inputs, if a firm can more than double its output, its production function exhibits
A) Constant returns to scale.
B) Increasing returns to scale.
C) Decreasing returns to scale.
D) Increasing marginal productivity to at least one input.
Correct Answer:
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Q1: If both land and labour costs increased
Q3: Suppose the production function for good q
Q4: The marginal rate of technical substitution is
Q5: A production function may exhibit
A) Constant returns
Q6: The isocost line measures the different combination
Q7: Trying to maximize output and minimize costs
Q8: The low-cost input combination is the point
Q9: There are an infinite number of isocost
Q10: A production isoquant is a function that
Q11: Any point where the isocost line cuts
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