A firm has increasing returns to scale if
A) A proportional change in the use of all inputs produces a more than proportional change in output
B) A proportional change in the use of all inputs produces a less than proportional change in output
C) A proportional change in the use of all inputs produces the same proportional change in output
D) An increase in capital leads to an increase in output
Correct Answer:
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Q49: Suppose a firm uses only capital and
Q50: For the Cobb-Douglas production function F(L,K)= ALaKb,a
Q51: Q52: Q53: One reason that firms will experience decreasing Q55: Returns to scale is a _ concept Q56: Consider the Cobb-Douglas production function F(L,K)= ALaKb.Which Q57: If technological change is factor neutral,then the Q58: For the Cobb-Douglas production function F(L,K)= ALaKb,a Q59: The Cobb-Douglas production function F(L,K)= ALaKbwill exhibit![]()
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