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Assume the generic production function Q=f(K,L) displays both decreasing returns to capital (K) and decreasing returns to labor (L), then:

Answer this production function will certainly display decreasing returns to scale.
this production function will certainly display constant returns to scale.
this production function will certainly display increasing returns to scale.
this production function may display increasing returns to scale.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M940316

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