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MMLU / With capital fixed at one unit with 1, 2, 3 units of labor added in equal…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

With capital fixed at one unit with 1, 2, 3 units of labor added in equal successive units, production of the output increases from 300 (1 unit of labor), to 350 (2 units of labor) to 375 (3 units of labor). Which of the following is a correct interpretation?

choices

  1. This is long run increasing returns to scale.
  2. This is long run decreasing returns to scale.
  3. This is long run constant returns to scale.
  4. This is short run diminishing marginal productivity.

subject

high_school_microeconomics

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