An aggregate production function exhibits increasing returns to capital when
A) no change in capital produces a 1% increase in output.
B) a 1% decrease in capital produces an increase in the marginal product of capital.
C) a 1% increase in capital produces no change in output.
D) each additional unit of capital increases the number of jobs by more than 1%.
E) each additional unit of capital has a higher marginal product than the previous unit.
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