If a Firm Increases All of Its Inputs by 10

question 344

Multiple Choice

If a firm increases all of its inputs by 10 percent and its output increases by 10 percent, then

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

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Definitions:

Disease

A disorder of structure or function in a human, animal, or plant, especially one that produces specific signs or symptoms.

New Opening

A surgically created passage or opening, commonly known as a stoma or ostomy.

-lepsy

A suffix used in medical terms to denote a seizure or convulsion disorder, such as in epilepsy.

Seizure

A seizure is a sudden, uncontrolled electrical disturbance in the brain, leading to changes in behavior, movements, feelings, and levels of consciousness.