The assumption of constant returns to scale suggests that if Nand Kboth decrease by 3%: Select one: а. the capital-labour ratio ( K/ N) will increase. b. Y will decrease by less than 3%. С. Y will decrease by more than 3%. d.
The assumption of constant returns to scale suggests that if Nand Kboth decrease by 3%: Select one: а. the capital-labour ratio ( K/ N) will increase. b. Y will decrease by less than 3%. С. Y will decrease by more than 3%. d.
Chapter1: Making Economics Decisions
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![Economics
The assumption of constant returns to scale
suggests that if Nand Kboth decrease by 3%:
Select one:
а.
the capital-labour ratio ( K/ N) will increase.
b.
Y will decrease by less than 3%.
С.
Y will decrease by more than 3%.
d.
Y will decrease by exactly 3%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7fff5788-e6ab-49f7-8780-22a15bf79bb0%2F33783c28-4f8f-4188-9ff6-d8631f6560e0%2Fc5035pv9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Economics
The assumption of constant returns to scale
suggests that if Nand Kboth decrease by 3%:
Select one:
а.
the capital-labour ratio ( K/ N) will increase.
b.
Y will decrease by less than 3%.
С.
Y will decrease by more than 3%.
d.
Y will decrease by exactly 3%
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