pital each increase by 8% and output also increases by 3%. The production function exhibits_ returns to scale technology. a. Constant b. Increasing
pital each increase by 8% and output also increases by 3%. The production function exhibits_ returns to scale technology. a. Constant b. Increasing
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 27RQ: What is the difference between economies of scale, constant returns to scale, and diseconomies of...
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Transcribed Image Text:Suppose the inputs of labour and capital each increase by 8% and output also increases by
8%. The production function exhibits_
returns to scale technology.
a.
Constant
O b. Increasing
O c. Decreasing
O d.
Zero
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