MCQOPTIONS
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| 1. |
If a production function exhibits constant returns to scale ? |
| A. | doubling all of the inputs more than doubles output due to the catch-up effect |
| B. | doubling all of the inputs has absolutely no impact on output because output is constant |
| C. | doubling all of the inputs less than doubles output due to diminishing returns |
| D. | doubling all of the input’s doubles output |
| Answer» E. | |