Assume a Firm Is Using 10 Units of Capital and 10

question 96

Multiple Choice

Assume a firm is using 10 units of capital and 10 units of labour to produce 10 widgets per hour.By doubling both inputs the result is a doubling of output.This firm is experiencing

• A)diseconomies of scale.
• B)decreasing returns.
• C)increasing costs.
• D)economies of scale.
• E)constant returns to scale.

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