a
there is constant returns to scale
b
there is increasing returns to scale
c
there is decreasing returns to scale
d
diminishing returns set in
Explanation
Correct Option
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Iember_codes
3 years ago
The answer should be B, In increasing returns, the marginal product is greater than the AP because each additional unit contributes more to the total product than the previous unit.
The AP also increases but not as much as the Marginal product.
