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Currently, a firm produces Y units of output using optimum levels of inputs Lo and Ko. The technology exhibits diminishing returns whenever an input is
Currently, a firm produces Y units of output using optimum levels of inputs Lo and Ko. The technology exhibits diminishing returns whenever an input is held constant. Ceteris Paribus, if the firm increases its output to Z units by optimally employing bLo and bKo. units of inputs, which of the following is true? Select one: a. Cannot say anything for sure b. Output Z will be equal to by c. Output Z will be less than by d. Output Z will be at most equal to by e. Output Z will be more than by
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