If a Firm Doubles the Amount of Labor It Uses

question 67

Multiple Choice

If a firm doubles the amount of labor it uses and triples the amount of capital it uses but its level of output less-than-triples as a result,what can be said about the firm's returns to scale?

• A) This firm has increasing returns to scale.
• B) This firm has decreasing returns to scale.
• C) This firm has constant returns to scale.
• D) Nothing can be determined about this firm's returns to scale based on the information given.

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Definitions:

Benign

A noncancerous or non-malignant growth or condition.

Phagocytes

Cells that ingest and digest foreign particles, bacteria, and dead or dying cells, playing an essential role in the immune system by removing pathogens and cellular debris.

Autoimmune Disease

A condition in which the immune system mistakenly attacks and damages the body's own tissues.

Body Fluids

Liquids produced by the body, such as blood, saliva, and urine, that maintain bodily functions and protect against infection.