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      Question

      The production function Q = 5L + 2K, where Q = output,

      L = labour, K = capital, indicates:
      A constant returns to scale Correct Answer Incorrect Answer
      B decreasing returns to scale Correct Answer Incorrect Answer
      C increasing returns to scale Correct Answer Incorrect Answer
      D first increasing and then decreasing returns to scale Correct Answer Incorrect Answer

      Solution

      The correct answer is A

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