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Satsume Satsume
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6 years ago
If input prices are constant, a firm with increasing returns to scale can expect
A) costs to double as output doubles.
B) costs to more than double as output doubles.
C) costs to go up less than double as output doubles.
D) to hire more and more labor for a given amount of capital, since marginal product increases.
E) to never reach the point where the marginal product of labor is equal to the wage.
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Microeconomics

Microeconomics


Edition: 8th
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6 years ago
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