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

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?
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  • 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:

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