Multiple Choice
Use the following table to answer the questions :
Table 7-4 shows the shows the quantities of labor and capital required to produce various levels of output.
-Refer to Table 7-4.When the firm increases production from 48 units of capital and 16 units of labor to 96 units of capital and 32 units of labor,the production function exhibits:
A) increasing returns to scale.
B) constant returns to scale.
C) diminishing marginal returns.
D) decreasing returns to scale.
Correct Answer:
Verified
Correct Answer:
Verified
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