Question
2. If a firm increases all of its inputs by 60 percent and its output increases by 90 percent, then you know that:
A) it is encountering diseconomies of scale.
B) it is encountering economies of scale.
C) it is encountering constant returns to scale.
D) the marginal products of all inputs are falling.
A) it is encountering diseconomies of scale.
B) it is encountering economies of scale.
C) it is encountering constant returns to scale.
D) the marginal products of all inputs are falling.
Answers
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