Does it make sense to consider the returns to scale of a production function in the short run?
A) Yes, this is an important short-run characteristic of production functions.
B) Yes, returns to scale determine the diminishing marginal returns of the inputs.
C) No, returns to scale is a property of the consumer's utility function.
D) No, we cannot change all of the production inputs in the short run.
D
Economics
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Indicate whether the statement is true or false
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One of the most important areas of disagreement among macroeconomists today is over
A) the slope of the IS curve. B) the slope of the LM curve. C) the definition of consumption spending. D) the definition of government spending. E) none of the above
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