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    Question

    In the first stage of the classical production function,

    the elasticity of production is typically:
    A Less than one Correct Answer Incorrect Answer
    B Greater than one Correct Answer Incorrect Answer
    C Equal to one Correct Answer Incorrect Answer
    D Zero Correct Answer Incorrect Answer
    E Negative Correct Answer Incorrect Answer

    Solution

    During stage one, marginal product exceeds average product, resulting in increasing returns and elasticity of production greater than one.

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