A firm has the production function f(x, y) = x1.40y0.90. This firm has
A) decreasing returns to scale and increasing marginal product for factor x.
B) constant returns to scale.
C) increasing returns to scale and decreasing marginal product of factor x.
D) decreasing returns to scale and diminishing marginal products for factor x.
E) None of the above.
Correct Answer:
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