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4- In a production process, all inputs are increased by 20%,but output
increases less than 20%. This means that the firmexperiences:

A. Decreasing returns to scale.   
B. Constant returns toscale.       
C. Increasing returns to scale.
D. Negative returns to scale   Quiz02     ECO401

Spring 2009    VU

Jul 26th, 2015

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A. Decreasing returns to scale.

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Jul 26th, 2015

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