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Question Practice

What effect do constant returns to scale have on a firm's long-term growth?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Microeconomics
Production And Costs
Question Bank

What effect do constant return...

Single Answer MCQ
Q-00089453

What effect do constant returns to scale have on a firm's long-term growth?

1

Limits potential growth

2

Supports sustainable growth

3

Encourages rapid expansion

4

Results in shrinking market share

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Q1.

What does the production function describe?

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Q2.

If a production function exhibits constant returns to scale, which of the following is true?

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Q3.

Which production function exhibits increasing returns to scale?

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Q4.

What is the marginal product of labor (MPL)?

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