Consider The Following Set Of Data That Looks At How Output Changes Following Changes In Inputs 3 Marks Quantity Of L 1 (64.05 KiB) Viewed 40 times
Consider The Following Set Of Data That Looks At How Output Changes Following Changes In Inputs 3 Marks Quantity Of L 2 (64.05 KiB) Viewed 40 times
Consider the following set of data that looks at how output changes following changes in inputs. (3 marks) Quantity of Labour Quantity of Capital Output 0 5 0 10 10 100 15 250 20 450 40 25 575 50 30 650 20 30 Which of the following statements accurately describes what this data shows? (a) The firm experiences increasing returns to scale at all levels of output. (b) The firm experiences first increasing returns to scale and then runs into decreasing returns to scale. (c) The firm experiences first decreasing returns to scale and then increasing returns to scale. (d) The firm experiences increasing marginal returns to labour and increasing marginal returns to capital at all levels of output.
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