If a Firm Increases All of Its Inputs by 18

question 236

Multiple Choice

If a firm increases all of its inputs by 18 percent and its output increases by 14 percent, then

• A)it is encountering constant returns to scale.
• B)it is encountering economies of scale.
• C)it is encountering diseconomies of scale.
• D)the firm's long-run ATC curve will be falling.

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Definitions:

Macro Dialog Box

A graphical interface element that allows users to create, edit, and manage macros—automated sequences of commands or actions—in software applications.

Developer Dialog Box

A user interface element in software development tools that allows developers to input or configure settings and options.

Visual Basic

A programming language and environment developed by Microsoft for building applications in a relatively easy-to-use graphical development setting.

Option Button

A graphical user interface element that allows the user to make a single choice among a group of options, also known as a radio button.