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Figure 10-2 -If the Economy Is Characterized by Increasing Returns to Scale

Question 22

Multiple Choice

Figure 10-2 Figure 10-2 -If the economy is characterized by increasing returns to scale, then a A) doubling of inputs will lead to a more than two-fold increase in output. B) a doubling of inputs will lead to a constant output. C) doubling of inputs will lead to a two-fold increase in output. D) doubling of inputs will lead to a less than two-fold increase in output.
-If the economy is characterized by increasing returns to scale, then a

A) doubling of inputs will lead to a more than two-fold increase in output.
B) a doubling of inputs will lead to a constant output.
C) doubling of inputs will lead to a two-fold increase in output.
D) doubling of inputs will lead to a less than two-fold increase in output.

Correct Answer: