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A Firm Increases Both Its Plant and Its Labor Force

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A firm increases both its plant and its labor force by the same percentage and its average total costs remain unchanged. Is the firm experiencing increasing returns to scale, constant returns to scale, or decreasing returns to scale?


Definitions:

Inherent Responding

The natural or instinctive reactions and responses that are built-in or innate to an organism, not learned through experience.

Difficult Temperament

A behavioral profile observed in infants and children characterized by high levels of irritability, difficulty adjusting to new situations, and irregular bodily functions.

Irregular Sleep

A pattern of sleeping where the timing, duration, or quality of sleep varies significantly and inconsistently night to night.

Irritable

Having a tendency to be easily annoyed or angered, often as a result of stress or frustration.

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