Assume a Firm Is Using 6 Units of Capital and 6

question 11

Multiple Choice

Assume a firm is using 6 units of capital and 6 units of labour to produce 6 baskets.Now it doubles both inputs resulting in a new total of 16 baskets being produced.This firm is experiencing

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