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An Aggregate Production Function Exhibits Constant Returns to Scale When

Question 63

Multiple Choice

An aggregate production function exhibits constant returns to scale when a one percent increase in labour input


A) along with a one percent decrease in capital produces the same amount of output.
B) along with a one percent increase in capital produces the same amount of output.
C) produces a one percent increase in output.
D) along with a one percent increase in capital produces one percent more output.
E) induces a one percent increase in capital input.

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