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Management · Q154

Managerial Economics

Graduate and Post Graduate · Management · question 154

Q154

The following table shows the various combinations of labour (L) and capital (K) and the resulting outputs Combination Output (units) 1L + 1K 200 2L + 2K 400 3L + 3K 600 4L + 4K 800 5L + 5K 1000 This table shows the

The following table shows the various combinations of labour (L) and capital (K) and the resulting outputs
Combination Output (units)
1L + 1K 200
2L + 2K 400
3L + 3K 600
4L + 4K 800
5L + 5K 1000
This table shows the
A.
Constant returns to scale
Answer
B.
Increasing returns to scale
C.
Diminishing returns to scale
D.
None of the above

Answer: Option A

Solution

Answer: Option A
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