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If units of a variable factor are increasingly added to a fixed factor and the…

If units of a variable factor are increasingly added to a fixed factor and the marginal physical product keeps increasing, production is said to be taking place under conditions of?
  • A.
    increasing returns to the variable factor
  • B.
    increasing returns to scale
  • C.
    constant returns to variable factor
  • D.
    external economies of scale
Correct Answer: Option A
Explanation