An aggregate production function,with both capital and labour factor inputs,exhibits constant returns to scale when a 1% increase in labour input
A) produces a 1% increase in output.
B) along with a 1% increase in capital produces the same amount of output.
C) along with a 1% increase in capital produces 1% more output.
D) along with a 1% decrease in capital produces the same amount of output.
E) induces a 1% increase in capital input.
Correct Answer:
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