Question
In a production process, all inputs are increased by 10%; butoutput increases less than 10%. This means that the firmexperiences A) decreasing returns to scale.
In a production process, all inputs are increased by 10%; butoutput increases less than 10%. This means that the firmexperiences
A) decreasing returns to scale.
B) constant returns to scale.
C) increasing returns to scale.
D) negative returns to scale
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
